In recent years, the condotel market has tended to boom in BR-VT with diversified products. However, at present, this type still has many legal barriers thatmake it difficult for investors and managers.

ATTRACTIVE INVESTMENT CHANNEL

Condotel is a combination of apartment and hotel models, is becoming one of the real estate investment trends. The investment in condotel is a trend that not only attracts the domestic investors but also a product segment that attracts the attention of international investors, creating a high quality tourist product for tourists.

Mr. Trinh Hang, director of the Department of Tourism said: Recently, the property market has witnessed the development of resort projects with diversified products, including condotel. In BR-VT, there are more than 20 condotel projects. There are some completed projects, sold to secondary investors such as: The Imperial Complex of Lac Viet Joint Stock Company; Sanctuary resort project invested by Hai Vuong Tourism Joint Stock Company; Cantavil Long Hai Resort project of Daewon - Thu Duc House Development Joint Stock Company; The Hamptons Hotram Project of Tanzanite International Group ... From the beginning of 2018 up to present, about 10 condotel projects officially opened for sale in Ba Ria - Vung Tau: Vung Tau Regency at 3-2 street, Ward 10 and 11 (Vung Tau City) of ALLGreen Vuong Thanh-Trung Duong Limited Company; DIC condotel The Landmark Residence of DIC Group; Lan Rung condotel project (Dat Do district) ...

Tourists at The Imperial Complex, a condotel project of Lac Viet Joint Stock Company in Bai Sau, Vung Tau.

Despite the recent development in recent years, the supply of this product has approximated the supply of ground-based products - the top favourite product of investor in the real estate market for many years. In BR-VT, prices of condotel apartments in the province are from 25 to 45 million dong/m2. The condotel projects are mainly located in coastal areas such as Vung Tau, Phuoc Hai, Ho Tram ... According to experts, from now until 2020, condotel market will continue to be exciting because there are series Investors such as DIC, Hodeco, Tuan Chau Group ... are continuing to build condotel projects.

Explaining the attraction of condotel type in the market of BR-VT, real estate experts think that this is the best product in the segment of real estate resort today. BR-VT capacity is always high, especially holidays, Tet. In addition. Besides, because the real estate market of resort in  BR-VT is easy to exploit, the real estate companies also bravely launched the program committing to attractive profit. In 2018, this level of commitment is ranging from 10-12%, has created a great attraction for customers to choose condotel BR-VT instead of other types of investment such as gold, securities or foreign currency.

Condotel Vung Tau Melody project (Vo Thi Sau - Vung Tau city) will be put into operation at the end of 2017.

MANY OBSTACLES

Condotel is a new type of real estate and is not specifically noted in the Law on Real Estate Business, Law on Investment, Housing Law ... Therefore, many businesses are not very convenient when deploying investment and trading this product ; Local government is embarrassing in management. Specifically, the condotel type is currently in trouble about the procedures for building permits, transfer, separation of land use rights, issuance of certificates of land use rights, planning, management and operation of this type ... At present, the Government has not issued any document that provides specific guidance on this type of investment. Therefore, in some provinces and cities, local authorities have to flexibly apply laws to promulgate regulations on management of investment and business activities in the area.

To remove the obstacles for the condotel type, the company said that the tourist hotel and tourist apartments should be called Resort Real Estate when building management regulations. At the same time, the orientate it as a high quality tourism product, to impose standards from the planning stage, project scale to the selection of managers and operators. According to Le Dinh Thang, Chairman of the Board of Directors of DIC No. 4, the granting of LURCs for trade and services has a term of 50 years, but there are no specific regulations relating to condotel, land for commercial services or landscape. According to Thang, condotel should be classified as a long-term land.

Lan Rung resort in the coastal area of Phuoc Hai (Dat Do district) is opening for sale condotel tourist apartments.

According to the analysis of real estate experts, besides the lack of legal framework, the balance of supply - demand should also be taken into account. Condotel buyers are still mainly investors and mainly buy to rent. It can be clearly seen that the condotel product marketed in BR-VT in recent years has increased sharply while the purchasing power is moderate and there is no sign of rapid increase in the coming time. Consequently, for customers who purchase a condotel, they need to have smart choices such as choosing branded developers who have a consistent profit margin (equal or slightly higher than bank interest rates), they shouldn't dream of too high profit margin, it is very risky. Customers should also select products at potential value-added locations, have superior mechanisms and international connectivity to attract customers.

Quang Vũ