Lack of legal framework, title deeds for condotels worries buyers

By Nguyen Ha   August 5, 2018 | 11:50 pm PT
Lack of legal framework, title deeds for condotels worries buyers
About 23,000 condotel units were build last year in Vietnam. Photo acquired by VnExpress
Challenges remain in building a legal framework for condotels development in Vietnam, industry insiders said at a recent conference.

There are no laws or regulations on buying, selling and managing condotels, Nguyen Manh Ha, deputy chairman of the Vietnam National Real Estate Association, told the Vietnam Seaside Tourism Real Estate Forum last Saturday.

This is the reason for recent disputes between buyers and management companies over ownership and maintenance of condotels, he said.

“Management companies and buyers are waiting for a law so that their rights can be guaranteed when investing in this type of property.”

Concurring, Duong Thuy Dung, senior director of real estate consultancy CBRE Vietnam, said there is no protection for buyers if management companies fail to fulfill their commitments.

Nguyen Manh Khoi, deputy head of the Ministry of Construction's department of house and real estate management, said ownership is one of the main areas that needs regulating.

Many buyers are concerned about the lack of title deeds since authorities do not issue them for condotels, Khoi said.

“This is the reason why many buyers are reluctant to invest in this kind of property,” he added.

Some 23,000 condotel units were built last year in Vietnam, according to the Ho Chi Minh City Real Estate Association.

From 2017 through 2019 around 29,000 more units would hit the market, it said.

Only 33 percent of new condotels were sold last year, just half the number reported in 2016, HCMC-based real estate firm DKRA said.

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