“There have been many concerns over supply-demand issue of condotel in the market, but FLC thinks that there is no need to worry. I think, with the current increasing speed of visitors, number of condotel is still not much.
Meanwhile, the number of investors capable of developing condotel is not much, and customers are only interested in choosing the owner with real capacity. “
The above viewpoint is presented by Mrs. Huong Tran Kieu Dung, Vice Chairman of FLC Group at the online conference “condotel market and the concern of oversupply”, organized by Vietnam Economic Times on August 10.
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“The real demand is still large”
According to FLC vice Chairman, this segment reflects the interest and development of tourism. Through the implementation and business of the resort tourism, the FLC acknowledges that Vietnam’s tourism is growing significantly, attracting a large number of foreign and domestic tourists.
Meanwhile, according to the statistics of the consultancy units as well as the managing agencies, investors only launch thousands of condotel to the market annually, but the demand is even greater.
Up to present, the number of investors who capable to develop condotel is not much and customers are often interested in investing and choosing product of the real capacity investors. They not only buy condotel but also enjoy its value.
Having the same viewpoint of FLC representatives, Mr. Nguyen Manh Ha, Chairman of Phu Quy Land said that Cocobay project has recently opened 1,000 rooms, but the occupancy rate is often full.
According to Mr. Ha, not only in tourist destinations but also right in Hanoi, customers still have big demand for condotel, but unfortunately, investors have not paid much attention to the market here.
“There are many opinions supply-demand of condotel, but we are rather confident and optimistic because amount of money flowing into the condotel is from many investors, and has sustainability. Mobilizing social capital means going from the actual demand, sharing the risk, “said Nguyen Ngoc Thanh, Deputy Chairman of the Vietnam Real Estate Association.
Condotel is currently associated with tourism, in the context of tourism is oriented to become the national key economic sectors.
Especially, also according to Mr. Thanh, among the investment channels, there is no channel as attractive as the resort real estate in general and condotel in particular. Most of the owners are committed to share profits with secondary investors from 9-10% which is guaranteed in 10 years. In addition, there has a lot of other preferences.
The legal framework should be completed
” Through research and practice, the fear of over-supply is not at risk, because the supply can be measured, but the demand also depends on the viewpoints. The concern may become the risk means that the legal status is still deflated, not completed, ” pointed Mr. Thanh.
Regarding concerns over condotel oversupply, according to Ph. Dr. Le Dang Doanh, this is the market sensitivity, a useful warning to prevent excessing oversupply resulting in ineffective investment.
However, condotel is still relatively new in Vietnam but is the product of the sharing economic era.
Mr. Doanh also recommended that state agencies should actively create legal framework, mobilize investment to create a systematic product so that tenants know about benefits they are entitled to. It is necessary to creates a full legal framework as well as products meeting reasonable standards for secondary investors.
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