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Condotel workshop conflicted on supply and demand

Released at: 14:16, 11/08/2017

Condotel workshop conflicted on supply and demand

Photo: VET

Some at "Condotel Market and Fears of Oversupply" claim market actually faces an undersupply.

by Ngoc Lan

The supply of condotels to the market in 2016 actually failed to meet demand or bolster existing tourism infrastructure, Mr. Nguyen Ngoc Thanh, Deputy Chairman of the Vietnam National Real Estate Association (VNREA), told at a workshop entitled “Condotel Market and Fears of Oversupply” held by VET on August 10 in Hanoi. Many others held views contrary to the name of the workshop.

As at the end of 2016, condotels had become a strong investment trend, led by Nha Trang, Da Nang, Phu Quoc Island, Thanh Hoa, and Quang Ninh.

Experts and representatives of developers agreed at the workshop that condotels have been found around the world for some time but only been developed in Vietnam for about two years but have become a trend among investors.

Mr. Thanh added that the model has many new features as regards trade and business. “Condotel investments will not use bank loans, they will attract social capital,” he added. “Investment will therefore see the risk shared, create sustainable development, and be linked with tourism activities.”

Meanwhile, Ms. Huong Tran Kieu Dung, Deputy Chairwoman of the Board of Management at the FLC Group, said that condotels reflect the development of Vietnam’s tourism sector and show no signs of saturation at the moment.

In 2010, foreign visitors to Vietnam stood at more than 5 million and had doubled by 2016, with the constantly increasing figure being a major driving force. “FLC aims to develop resort properties associated with tourism infrastructure,” said Ms. Dung. “There are many condotel projects in Vietnam but FLC chooses its own path in potential markets where supply is limited.”

Regarding legal issues, Ms. Vu Thi Lan Anh, Deputy General Director of the CEO Group, told the workshop that authorities should provide detailed guidance on purchasing condotels and securing ownership certificates for investors.

She added that foreigners not being allowed to buy condotels is a limitation. “They are attractive to foreigners, including those working in Vietnam and those overseas,” she said. “If the government adopted more open policies for foreigners, it would help to capitalize on foreign development capital.”

Similarly, Mr. Nguyen Manh Ha, Chairman of the Board of Management at Phu Quy Land, said the company has worked with customers from South Korea, Hong Kong, and Singapore, and they are very much interested in Vietnam and its real estate resort products but the legal framework is problematic. “An open legal corridor should be proposed for foreigners to develop condotels and exploit economic potential,” he added.

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