More than 3,700 tourist apartments, which are part of the Times Square Danang complex, were converted into apartments by Danang People’s Committee in May, and are now causing concern about infrastructure overload both there and at future conversions.
Funded by Kim Long Nam Group, the towers include unfinished units with a scale of 30-50 floors with thousands of apartments, located next to My Khe Beach in the city’s Son Tra district.
According to architect Pham Phu Binh, vice president of the Vietnam Association of Construction Consultants, the conversion was to help condotel developers overcome current difficulties because their owners would be granted ownership certificates, but it also causes concern that they would gather a larger population density and put pressure on urban infrastructure and socioeconomic development.
“With the permission to issue ownership for a condotel, this product still has good potential in the long term. However, only a part of the project should be allowed to be converted to units that are not putting great pressure on urban infrastructure,” Binh said.
|Times Square Danang complex, source: timesquare.com.vn
However, he warned that management authorities need to study and consider other possible conversions on a case-by-case basis before approval.
“It is necessary to determine from the beginning that the type of condotel is not a permanent house but serves the purpose of tourism and short-term stay only. Infrastructure systems in condotel projects are not appropriated for serving thousands of residents in the long term,” he added.
Meanwhile, Nguyen Manh Khoi, deputy director of Housing and Real Estate Market Management Department under Ministry of Construction, said that the ministry is receiving proposals to adjust condotel projects to housing in many localities with a total up to several thousand units.
“Ministry bodies are setting up guidelines for this conversion, which type of condotel can be transferred, and which ones cannot. Then local authorities and developers can follow,” Khoi said.
Figures from the Ho Chi Minh City Real Estate Association said that there are more than 83,000 condotel units nationwide waiting for approval of ownership, mainly at resort complexes that have a lifespan of 50-70 years.
With numerous condotels cumulating over the past 10 years, the condotel segment has struggled due to the impact of tourism closures in the past few years, along with legal problems in granting ownership.
To remove some of the issues, the government issued Decree No.10/2023/ND-CP, which amends and supplements a number of articles guiding the implementation of the Law on Land and became effective in May.
The decree permits tourism accommodation built on commercial and service land to be certified for ownership of land-attached construction works.
Therefore, hotel apartments, condotels and officetels, resort tourist villas, and other works for accommodation and tourism on commercial and service land are subjected to be provided ownership if they meet all requirements.
|Status of condotel ownership may require further direction
Although a new decree will allow the issuing of ownership certificates to condotels, experts say the regulations will still be inadequate and need to be supplemented in the near future to create a good enough legal corridor for the thousands of condotels in the market.
|Condotels, officetels get ownership certificates from May 20
Owners of condotel apartments who fully satisfy the conditions under the land law, construction law and the law on real estate business shall be granted a certificate of ownership of land-attached construction facilities according to the commercial or service land area purpose.
|Revenue sharing going some way to ease condotel status
The real estate market for resort villas and condos is showing signs of short-term recovery from a difficult period due to low liquidity.