Recently, the Government issued Decree 10/2023/ND-CP amending and supplementing a number of articles of the Decrees guiding the implementation of the Land Law. Accordingly, hotel apartments, resort apartments, accommodation offices, resort villas and other works serving accommodation and tourism on commercial and service land, if qualified, will be granted certificates of ownership.
The new decree is expected to have a positive impact on the resort apartment market, which has been neglected by investors in recent years due to legal issues.
Surveying real estate websites, it can be seen that recently there have been many advertisements for condotels with a loss of several hundred million dong.
Many condotels are being sold at deep losses. (Screenshot)
For example, a condotel in Phu Tho was sold by the owner at a loss of 750 million VND. Accordingly, this apartment was priced at 1.6 billion VND, but the owner is currently selling it for 1.1 billion VND, including a 259 million VND interior package and transfer fee.
Or another customer is selling a 45m2 condotel in Khanh Hoa at a loss for 1.1 billion VND, 50% off the current price the investor is selling.
Similarly, another apartment in Binh Thuan is advertised as having a beautiful location, high floor, and direct sea view. This apartment has an area of 30m2, with 1 bedroom, and is sold for 1.1 billion VND. This investor said that because he needed money to pay the bank, he had to sell this condotel apartment at a low price. The current selling price has cut a loss of 200 million VND compared to the contract price from 2019, with a profit commitment of 12%/year.
Most of these loss-cutting customers bought condotel apartments 2-3 years ago and had advertised them for sale in many places but had not found buyers.
A recent report from the Ministry of Construction said that the transaction situation in the first quarter of 2023 for resort real estate continued to be sluggish. Many projects are still facing liquidity difficulties in both the primary and secondary markets, although investors still offer many policies such as preferential interest rate support and principal grace period to attract customers.
For the condotel market to develop, experts say it is necessary to clarify many contents and soon put the new decree into practice. (Illustration photo)
According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARS), the resort real estate market has been experiencing legal problems for a long time, so many investors in this segment have been “stuck” for many years. Therefore, many people are currently not confident with this type of real estate.
Mr. Dinh recommended that in order for the resort real estate market to recover soon, after the decree is issued, the Government needs to direct local authorities of provinces and cities to urgently work with investors to implement the new regulations into practice.
In the actual process of granting certificates for these products, it is necessary to be flexible and remove obstacles in administrative procedures to soon have sufficient legality, help put them into circulation on the market, create liquidity for the economy, and help reduce bad debt.
According to lawyer Nguyen Hung, Director of Phuc Khanh Hung Law Firm, Decree 10 has created a basic legal framework for granting certificates of land use rights and assets attached to land for tourism real estate. Along with that, the rights of investors are also protected by law and that asset can participate in civil transactions such as pledge, mortgage, capital contribution, donation, etc.
However, the biggest problem at present is putting policies into practice, which means implementing them in accordance with the provisions of the Land Law, Housing Law, Real Estate Business Law, and many other specialized legal regulations. While these issues are still a difficult problem for many investors.
“ I think that to put this new policy into practice, our agency needs more detailed instructions ,” emphasized lawyer Nguyen Hung.
Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property), said that the current problem is the issuance of "red books" for condotel apartments with a limited term. So the question is: Who will take it back when the term on the red book expires? The investor or the state and how will taxes be paid? There are currently no specific instructions on what will happen if the project can still be used but the land allocation period expires. It is very likely that when the term on the red book expires, the price of condotel apartments will drop sharply.
“ This issue needs to be clarified so that people can feel secure and invest in this segment. Only then will the market stabilize and become vibrant again, ” Mr. Toan analyzed.
Chau Anh
Useful
Emotion
Creative
Unique
Wrath
Source
Comment (0)