According to reports of the Association of Real Estate Ho Chi Minh City (HoREA), hotel apartment market, serviced apartments and condominiums in Ho Chi Minh City. The condotel occupies 56% of total supply.
Specifically, according to HoREA, usually in countries, condotel supply is lower than the hotel and resort supply. However, In the past six months, hotels and resorts accounted for only 44% of total supply.
In addition to the fact that the owners committed too high profits (up to 12% in 8-12 years), the sustainability of condotel market development in HCM question mark.
HoREA also expressed concern about the potential risk to secondary investors, in addition to the legal risk of condotel (not explicitly stated in the Housing Code).
Mid-range segment has declined sharply
HoREA’s report said that in the first 6 months of this year, HCM has developed VND4.92 million /sqm floor housing, bringing the total area of city housing to VND157 million/ sqm, average 18.47 sqm per person.
The city is also fiercely implementing the “Urbanization and Urban Development Program”, in which housing development for social security is focused on 9 resettlement projects, scale 10,229 apartments and a house floor.
In the first six months of the year, 32 housing projects in the future were approved by the Department of Construction to qualify for capital with a total of 16,506 (including 14,754 apartments, 1,752 low-rise buildings), total the value needed to mobilize up to VND30,599 billion.
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