Real Estate “Hybrid” Attractive Investors

Real estate “hybrid” is gradually becoming the bright spot in the real estate market in Vietnam in recent years. At present, there are three types of “hybrid” real estate – office (condotel), condotel (hotel) and hometel (hotel) as a form of product improvement. of the investors, aims to create an attractive investment channel for investors. All projects of this type have achieved high sale, most of them sold the whole amount of sales in the event of project introduction.

On the market, there are three types of real estate “hybrid” officetel, condotel and hometel.

Officetel is a combination of office and hotel with 50 years of ownership. Officetel is usually located in the commercial podium of the apartment project.

In the rental market, officetel has two advantages – the smaller flat area and the address can be registered business license, while the address of the traditional apartment cannot do the same.

Officetel is a combination of office and hotel with 50 years of ownership

In addition, service fees and administrative fees of officetel are lower than in office buildings. The target customers of this type are small start-ups and limited budget tenants.

Condotel is a product of interference between apartments and hotels with a duration of 50 years, while hometel with similar functions but with a lifetime of ownership. These two types of properties are managed in the form of a high-end hotel and multi-tenancy management complex. Owners can stay and enjoy the services, facilities and facilities within the project.

In particular, most condotel projects are located at locations along the beach or tourist destinations and are run by reputable operators, while hometel projects are typically located in the middle city center. Particularly in the Ha Noi and Da Nang real estate markets, and is run by the owners.

Why real estate “hybrid” attractive to investors? According to economists, real estate, the hybrid apartments in the segment of real estate resort and thrive in the city with tourism potential. It combined with the local utility system and commitment from the management unit for maintenance and maintenance during the operation. Should these types of apartments have attractive profit potential and the ability to increase prices compared with other models of real estate.

Condotel is a cross between apartment and hotel with 50 years of ownership

In addition, investment in “hybrid” real estate can bring a much higher return than investment channels, cash flow can be up to 8-10% per year, even higher in the first year.

Meanwhile, consultant and market researcher Jones Lang Lasalle (JLL) Viet Nam Ty Ga Nguyen said: First, “hybrid” real estate is designed, developed and advertised for the purpose of buying – renting, providing an alternative investment option for investors who want to diversify their portfolio. Secondly, these types of properties are characterized by small areas requiring low investment, which makes investors willing to expand their investments.

However, besides benefits and profits from “hybrid” real estate, investors also face the disadvantages of this type as: The legal framework for “hybrid” real estate is still unstable and many holes, can create risk for investors

For the type of officetel: Officetel co-exists with the apartment and can lead to difficulties in project management. In addition, investors often take advantage of the unstable legal framework to convert the commercial items into the officetel sector to quickly recover capital. In this case, the investor and the investor maximize the benefits, but the benefits of the occupants and tenants are reduced correspondingly to the facilities and facilities being reduced.

investors and investors achieve maximum benefits, but the benefits of residents and tenants are reduced corresponding to facilities and utilities are reduced.

On the other hand, Professor Dang Hung Vo – Former Deputy Minister of Natural Resources and Environment also worried that many inexperienced investors often invest money, buy beach villas in the movement without calculating whether the product is really profitable for themselves or not. Not to mention, many investors look at the advantages of the crisis without considering such issues as the product, payment schedule, price, profitability. Such investments are easy to take risks…

In the future, the supply of real estate “hybrid” will continue to increase sharply. Therefore, the real estate market needs a complete legal framework for this type to regulate the market in the most reasonable way,  ensure that the investors harmonize the interests and balance the needs of both buyers and residents of the project.

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