While condotels in Vietnam have grown in popularity over the past few years, the legal framework of these projects has remained muddled. That could soon be changing after Vietnam’s Deputy Prime Minister asked the Ministry of Natural Resources and Environment to look into the matter.
The key issue at the moment is in regard to the Land Use Right Certificate of condotel units, also known as red books or pink books because of their cover color. It has been reported that owners in some condotel projects have not been issued the appropriate Land Use Right Certificate which has caused concern among some property buyers.
Now the Ministry of Natural Resources and Environment will look into the matter with the aim of improving the legal framework of condotel ownership in the country. It is a move welcomed by many leading developers in Vietnam.
“It is necessary to soon have a legal framework to help the market become transparent, develop sustainably and protect consumers. The mentality of the buyer is that they always want to own,” Le Minh Tri, Chairman of the Board of Directors of Nam Group, was quoted as saying by Vietnam Business Forum. “If the red book can be issued, people are also more secure, and the banks are more willing to lend money.”
He added that this would boost demand and also promote the country’s tourism industry. Additionally, consumers can be more confident in their investment when holding the proper Land Use Right Certificate.
“Everyone wants to be their own property owner, so the recognition of ownership for condotel will certainly receive the attention of investors. At the same time, when it is transparent, businesses are also willing to develop this type of real estate,” Ho Duc Trung, a Ministry of Natural Resources and Environment Official, explained to the website.
He continued, “These moves act as an economic leverage in the context of a less transparent market. Certainly, when the type of condotel is properly developed, the products will be more interested in, and the confidence of home buyers will be more and more solid.”