Operating as condotel, Scenia Bay also outperforms due to its solid legal foundation, ensuring long-term investor ownership.
“Legal deadlock” of the condotel
Developed strongly in the last 3 years, but so far, the type of condotel has not officially named in the Construction Law, Housing Law and Real Estate Business Law.
Most importantly, in the Land Law, land for condotel construction is still commercial land (for a definite lease, not for sale). The concept of “residential land without unit formation” has not yet emerged, so condotel still can not have a legal basis for long-term ownership.
In essence, condotel is a “combination” between types: the apartment and the resort. If it is the apartment, it will be occupied by the Housing Law, if it is the hotel, it will be the Law of Tourism. With housing, buyers are long-term owners. If a hotel apartment, the buyer is only able to rent land for a term. Condotel brings in both of these properties, so it is not regulated by law.
In fact, some localities such as Da Nang, Nha Trang (Khanh Hoa Province) and Phu Quoc (Kien Giang Province) have adopted the policy of converting the purpose of using “commercial land” into ” into the unit”, thereby creating a basis for long-term ownership. However, this conversion is only applicable to resort villas but not to condotel.
Moreover, the fact that the provinces intend to change the land use purpose is only a pilot measure. The root problem lies in the Land Law is still not processed. So, more than once, Pham Van Thuong – Head of the Department of Housing Management and Real Estate Market (Ministry of Construction) said: “I have not seen the red book of the condotel”.
The psychology of most customers when buying condotel is now looking forward to long-term ownership, both for the purpose of business exploitation and as a property left for later generations. However, legal obstacles are not easy to solve. This means that risks continue to cling to investors. For example, the risk of capital, transfer, because condotel buyers cannot transfer their sales contracts (because the Law on Real Estate business not regulated).
Interpretation of the “deadlock”, integrated functions
Located on Pham Van Dong Street, Nha Trang City, Khanh Hoa Province, Scenia Bay is the newest project invested by Nam Tien Lao Cai Joint Stock Company.
The project is highlighted by the fishbone design, ensuring 100% of the apartment has a “view” of the sea. With 704 apartments for sale and 274 hotel rooms, Scenia Bay is the focus of the resort real estate market in Nha Trang.
It is known that Scenia Bay is one of the rare projects on the market now located near the sea that is granted a certificate of land use rights long. Therefore, the apartments for sale at the project will be long-term ownership and formed the unit in.
These outstanding advantages make the combined “condotel” and “serviced apartment” of the Scenia Bay project more attractive. That is, the apartments in the project are built, designed according to the strict standards of the type of “serviced apartment”, but it is considered the investment element of condominium resort – while ensuring the right Long-term ownership of the buyer.
Scenia Bay apartments and hotel rooms will be managed by InVision Hospitality, an international management unit with years of experience managing reputable hotel brands. This will ensure that the project is operated in a professional and profitable way for investors.
According to investors, based on solid legal foundation, superior design and guaranteed operation by a professional manager, the apartments at Scenia Bay can easily be transferred to the price. The margin is much higher than the projects in the same segment without legal clarity and no professional management unit involved in the operation.
Nha Trang is booming with a growing number of tourists and a growing number of investors are opening their doors to investors, the highlight of which is the Scenia Bay project.
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