Condotel grows out of the law?

That is noteworthy at the seminar on development and management of condotel legal and practical premises in Da Nang on April 7.

At this conference, in addition to unfinished legal issues to manage the condotel format, experts and managers have first reported the number of condotel condos in Vietnam.

The delegates wondered how the condotel was growing, but not yet clearly defined by the law.

According to the report of TS. Pham Sy Liem (Former Vice Minister of Construction), the first Vietnamese condotel is the 40-storey Nha Trang Plaza Tower, comprising: 240 five-star apartments built in 2009.

In Khanh Hoa alone, Khanh Hoa provided 11,872 units, accounting for 52% of the country’s condotel supply (22,837 units in the whole country) and 14.9% in other areas such as Binh Thuan; Da Nang 13%, Binh Dinh 6.6%; Quang Ninh 5.9%, Phu Quoc 4.3% … even the condotel also spread to Hanoi accounted for 1.8%.

Dr Pham Sy Liem said that the tourism market in Vietnam is developing rapidly and condotel is the type of infrastructure that can meet the pace of development. Therefore, state management agencies should quickly grasp the characteristics of this type of real estate, promptly build the legal framework for condotel development order and efficiency.

“Ultimately hoped the trend of investment in the herd, lack of market survey of many real estate business in our country’s condotel market will soon be terminated,” Liem said.

The condotel development projects in Da Nang intensify the pressure on traffic, infrastructure but this unknown type will manage.

Meanwhile, according to Le Hoang Chau, Chairman of HCMC Real Estate Association, from 2015 to September 2017, the country has 71 licensed condotels with 25,639 units, of which 15,010 condotel apartments.

Chau said there is a paradox that the rate of condotel apartments in Vietnam accounted for 56%, while the rate of hotel rooms accounted for only 44% is not normal. As in other countries, the ratio of hotel rooms is always higher than condotel apartments, so it is necessary to have a suitable and sustainable development solution. In the two years 2018-2019, it is estimated that there will be about 20,000 condotel apartments on average each year.

On the outbreak of condotel condos out of control as today, the Da Nang Construction Department said, in Da Nang condotel projects began to develop strongly from 2016.

Up to the end of February 2018, nine projects were licensed to build with about 9,300 units, including large-scale projects such as: The Empire Resort (1,969 units); Sun-Solied (3,252 units); Ariyana project (1,440 units); condotel Ngo Quyen Da Nang (864 units); Da Nang Green House (768 units); CT3 & CT7 towers of Danang Times Square project (591 units) …

“Most of these projects have been licensed in the form of short-stay accommodation and do not form residential units,” Da Nang Construction Department said.

According to Tran Dinh Khanh, deputy head of the Department of Housing Management and Real Estate Market, Da Nang Construction Department, although the condotel projects are developing strongly in the recent past, the current law to invest in construction, business, use management of construction works (investment law, land law, construction law, construction planning law, housing law, real estate business law …) only Regulations for accommodation, hotels, dormitories, guest houses, motels that are not specific to condotel type.

“Since this is a new type in Vietnam, the law has not specified the specific problem has caused problems for state management agencies and investors in the process of investment construction and business. real estate and operation management, condotel exploitation, “said Khanh.

Meanwhile, Transport Department of Da Nang said that the development and rampant control of condotel as in the central and coastal Danang is putting pressure on the urban transport infrastructure especially to contribute to the increase of traffic congestion. Many projects have not met construction standards, parking lot …

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