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The legal knot is removed, and the condotel is for sale to cut losses but there are no buyers.

Decree 10/2023/ND-CP is expected to remove the legal bottlenecks for businesses and buyers of hotel apartments, resort apartments (condotels), and accommodation offices (officetel). However, many analyses show that the issue of books is still a problem, so although this product is advertised for sale at a loss, few people are interested.


Photo: Internet


According to statistics from the Ho Chi Minh City Real Estate Association (HoREA), by the end of 2022, the condotel alone, the whole country has about 83,000 apartments waiting for the pink book, most of which belong to tourist resorts, using the land funds. trade and services for a term of 50 - 70 years.


Sharing with Lao Dong, Mr. Le Hoang Chau - Chairman of HoREA - said that over the past decade, new types of real estate including officetels, shophouses, and condotels are all facing legal problems at the certification stage.


After much expectation from the real estate business community and investors, Decree No. 10/2023/ND-CP amending Decrees detailing the implementation of the Land Law (Decree 10) was issued. onion.


This is considered a solution to remove immediate obstacles in land law enforcement, before proceeding to the overall solution of promulgating the revised Land Law, expected in November 2023.


However, after Decree 10 was issued, condotel apartments in many areas are still being sold at a loss but it is still difficult to find buyers.


For example, Phuong Anh - an investor in Hanoi - said that 4 years ago, her family spent 1.9 billion VND to buy a condotel apartment in Da Nang with an area of 40m2, equivalent to 47.5. million VND/m2.


The investor commits to pay 80% of the profit from the actual rental and the family will enjoy 15 free nights at the project. Phuong Anh expects to earn more than 20 million VND/per month.


“At that time, Da Nang tourism was very exciting, so in the first few months, I received an average of about 15 million VND/month. However, the sudden outbreak of the epidemic affected tourism, so during that time, I almost did not receive a commitment to rent again.


Since the epidemic is under control, every month, I only receive 5-6 million VND. Seeing that the situation was not good, I decided to sell it at the price of 1.5 billion dongs, a loss of 400 million dongs. Even so, my condotel has not been sold yet,” said Phuong Anh.


Explaining the recent reason why the sale of condotels at a loss is still taking place even though eligible projects will be issued with red books, Mr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) - said now, due to the recent legal problems of resort real estate and many problems.


Therefore, when investors are in this segment feel insecure and no longer interested.


VARS Chairman said that in order for the resort real estate market to recover soon, after the issuance of Decree 10, the Government needs to direct localities to urgently work with investors to implement new regulations in the coming months. reality.


In the actual process of issuing red books for these products, it is necessary to be flexible, remove obstacles in administrative procedures to soon have enough legality, help put them into circulation, and create liquidity for the economy. , helping to reduce bad debt.


Mr. Tran Xuan Luong - Doctor of Real Estate (National Economics University) - shared, the issuance of certificates only solves disputes between investors and customers.


After the certificate is issued, there is still no orientation for the management and operation of the apartment. Along with that, there are no clear regulations on regulations, standards, warranties, and maintenance for real estate.


(Lao Dong)


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