The MoNRE has just issued a document to guide land-use regimes and ownership certification of non-residential construction, including condotel and officetel.

Vietnam's real estate market will not be short of capital next year but will still face many challenges from policies and administrative procedures, experts said at the annual Vietnam Real Estate Forum.

Though investment in condotels is expected to benefit the economy and the real estate sector, the condotel market is facing major challenges, heard attendees at a forum on the legal corridor for the condotel segment.

After the short golden age, the condotel market is witnessing decline with the number of successful transactions just accounting for 25 percent compared to 70 percent in 2016-2017.

In light of the Cocobay Danang situation, Mauro Gasparotti, director of Savills Hotels APAC, writes on his expectations of the condotel market in Vietnam, and what solutions could be found to ease the situation.

Condotel project Cocobay Danang – a tourism complex which features footballer Cristiano Ronaldo in its advertising – suffered a PR disaster last week.

Several months ago, the condotel market was described as ‘falling into decay’, but now it is heating up again.

Condotel developers and buyers will breathe easier later in the year when the legal framework for the new type of property in Vietnam is to be released.

The long-term projects of a large scale and high quality are now on the focus.v

Minister of Construction Pham Hong Ha said at the meeting of the National Assembly early this week that his ministry and the Ministry of Natural Resources would complete regulations relating to condotel and officetel this year.

The real estate market developed well in 2014-2018, but unexpectedly has cooled down since the beginning of 2019.

While observers believe that it’s the right time to pour money into resort real estate, they also warn of the hot development of the market segment.

The Vietnamese condotel market, the only one in the region, shows serious problems because of legal deadlocks.

VietNamNet Bridge - The anticipated oversupply and unclear legal status have prompted many investors to give up investments in condotel projects.

VietNamNet Bridge - Some experts have proposed allowing foreigners to buy condotels in Vietnam to attract the foreign cash flow. 

VietNamNet Bridge - Real estate experts believe that selling condotels can bring huge profits to investors and savings in fees that apartment developers usually pay. 

VietNamNet Bridge - Investors are now developing new types of resort properties like homestays as condotels are no longer the preferred investment channel. 

2017 was a discouraging year for investors who poured money into condotels. However, analysts believe that once legal problems are settled, investment in this type of property will be increasing rapidly.

VietNamNet Bridge - While investors remain optimistic about condotels, seeing promising profits, experts are concerned about the rapid development of the real estate product.

VietNamNet Bridge - The supply of condotels has been soaring in the last few years and investors have been advised to think carefully before pouring money into the market segment.