Thanks to its unique traditional culture, Vietnam is increasingly becoming a popular tourist destination. In addition, not only get the attention of international visitors, domestic tourism is also gradually growing.
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This has kicked off many investors pouring money into property resort projects, most concentrated condotel model – hotel apartments.
These include Vinpearl Condotel of Vingroup, Condotel Havana Nha Trang owned by Best Western Group, and A la Carte project in Da Nang, owned by Serenity Holding. Slag of 30,000 resorts is opened for sale. This may be an advantage for the Vietnamese tourism industry, but the expectation of profitability will also face great challenges.
Supply more than demand
“In 2017, the resort property is still an attractive piece of cake” is what Ms. Duong Thi Thuy Duong, director of research and consulting of CBRE has identified. However, this can not be denied that the number of resort property products increasing the number of dizzy.
The high-end hotel supply in the three largest tourist destinations in Vietnam, Nha Trang, Da Nang and Phu Quoc, fluctuate between 29% and 30% on average. Nha Trang leads the market with 11,794 condotels, followed by Da Nang with 7,552 and Phu Quoc with 1,201.
Meanwhile, the growth rate of visitors in these places is lower and the difference is quite large. This shows that the volume of hotel accommodation in these locations will not be high and the level of competition is increasing.
Obstruction of property laws
However, there are many farmers who dream of owning these high-end real estate products but have legal problems. One of those concerns includes ownership and tenure.
According to the Land Law of 2013 and the Housing Act 2014, tourism projects (land for trade and services – non-agricultural land) that do business under the tourism project are rented out only to villas and apartments, do not allot and sold the background. In order for a buyer to be issued with a certificate of ownership, the land use purpose must be converted to many other expensive costs. This leads to another question that is whether the mansion that I purchased is permanently owned or not or is owned for a definite term.
Therefore, many investors “hesitate” to participate in transactions because of the nuisance and ambiguity in the handover of ownership of property resort. However, property experts also said that the fierce competition, as well as the challenges presented, will bring many surprises from the property market resort.
You are reading the article “Resort Property- Worried About Property Law” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/
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