The Ministry of Natural Resources and Environment (MoNRE) has sent a document to local departments to regulate the use and certification of non-residential real estate projects.
Investment in condotels remains appealing despite defaults in profit commitments by property developers, but a clear legal framework is needed to protect investors’ rights, according to experts.
Prices of condotels have dropped by 8 per cent this year compared to 2018 following disruptions in the profit commitments made to buyers, according to real estate portal Batdongsan.com.vn.
Condotels are often sold to investors and then leased back to the developer or an operating firm to manage rentals to holidaymakers.
Tourism growth has led to the development of Da Nang real estate market with a variety of products. In particular, high-end apartments with high liquidity and stable legal framework are the central focus of market attraction.
A legal framework covering condotel properties is urgently needed to protect the rights of both developers and buyers and to ensure sustainable development.