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The Supply Of Officetel Apartments Increased 14 Times

Officetel apartment

From the basket of goods below 600 units in 2014, the supply of officetel reached 8,433 units and it will escalate in the coming years.

Jones Lang LaSalle (JLL) Vietnam has released a report on the hybrid real estate market in Vietnam, which is the generic name for three officetel (condos), condotel (hotel) and hotel (hotel accommodation). This study specifically emphasizes the strong growth of office-officetel apartments, which is favored by investors and continues to increase in the coming years.

Specifically, the total supply of officetel baskets in 2014 under 600 units, by 2015 has jumped to 3,000 products. 2016 is the time of office bloom, the supply of more than 7,000 units. By the third quarter of 2017, Vietnam recorded a total cumulative supply of 8,433 products, an increase of 14 times the 2014 milestone.

Meanwhile, the condotel supply was officially opened and sold widely in the Vietnam market also rushing storm no less officetel. Currently, the hotel apartment line is mainly concentrated in three provinces Da Nang 6,550, Nha Trang 12,990 and Phu Quoc 1,808 apartments. In addition, condotel also appears in Lao Cai (Sapa), Hanoi, Quang Ninh (Ha Long), Hai Phong (Do Son), Quang Nam (Hoi An), Quy Nhon (Binh Dinh) and Ba Ria Vung Tau.

Officetel apartment
Hybrid store in Vietnam is rising, in which the supply of officetel apartments has increased 14 times compared to the milestone in 2014 and there is no sign of stopping

Particularly hotel, hotel accommodation, new hybrid real estate type appeared later not specific statistics but also promises to bloom in the coming time. The three types of a hybrid real estate are seen as a form of product innovation by investors, aiming to create an attractive investment channel for investors. All projects with hybrid real estate achieved high sales, most of the projects sold the entire amount open for sale during the project introduction event.

According to JLL, the main reason for the impressive growth of hybrid properties lies in its attractiveness to investors. First, a hybrid real estate is designed, developed and advertised for the purpose of buying – renting, contributing to diversifying the portfolio of customers. These types of properties have a small area, requiring low investment and quick capital recovery.

Officetel is a combination of offices, apartments and hotels with 50 years of ownership. Officetel is usually located in the commercial podium of the apartment project.

On the market for lease, officetel has two advantages – the smaller area of flat and address can be registered business license, while the address of the traditional apartment cannot do the same. In addition, service fees and administrative fees of officetel are lower than in office buildings. Tenants of this type are small startup companies and limited budget tenants.

Condotel is a cross between apartment and hotel with 50 years of ownership. Hometel has similar functionality but has a lifetime of ownership. These two types of property 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.

Most condotel projects are located in locations along the beach or tourist destinations and are operated by reputable operators. Hometel projects are usually located in central cities – particularly in Hanoi, Danang and run by the owners themselves.

However, besides the advantages of a hybrid real estate, investors also face the disadvantages of this type. It is an unstable legal framework, even more, gaps, which could pose a risk to investors.

You can read more information at Vietnam Real Estate Investment

Officetel apartment
illustration

Typically, officetel apartments coexist in a condominium project and may cause difficulties in the management of the building. In addition, investors often take advantages of the unstable legal framework to convert the commercial items into the official sector to quickly recover capital. In this case, the investors maximize the benefits, but the benefits of the occupants and tenants are reduced, corresponding to the facilities and facilities being reduced.

This unit forecasts that in the next few years, the supply of hybrid real estate will continue to increase. Therefore, the real estate market needs a complete legal framework for this type in order to regulate the market in the most reasonable way to ensure the investors harmonize the interests and balance the needs of both buyers and residents of the project.

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The Supply Of Officetel Apartments Increased 14 Times
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