Vietnam’s north and central region saw new condotel supplies in April but the south has seen none for four consecutive months, according to Vietnamese property services and consulting firm DKRA.
DKRA’s April market report shows that the country’s hospitality real estate segment had both supply and trading at “very low levels”.
As for condotels, there were only two projects on sale in April – one new and one in its next phase – with 84 units, down 58% compared to March and down 17% from a year earlier. Consumption was 32 units, or 38% of supply.
Of the 84 units, 46 are in the north and 38 in the central region. The south did not have new supplies for four months in a row.
Regarding consumption, up to 94% was in the central region. Primary selling prices did not change much, while suppliers offered preferential initiatives like discounts and longer payment terms to spur sales.
It is expected that in May, supply and demand may see some recovery thanks to the government’s supportive measures.
According to the Ho Chi Minh City Real Estate Association, by the end of 2022, the whole country had about 83,000 condotel units waiting for ownership certificates to be issued. Most belong to resort projects built on commercial land sites with a land use term from 50 to 70 years.
The government has recently issued Decree 10 stipulating the issuance of ownership certificates for condotel products used for accommodation purposes under regulations in the tourism industry. Meanwhile, there are many types of buildings containing condotel units governed by the laws on housing, construction, and real estate trading.
Therefore, Nguyen Van Dinh, chairman of the Vietnam Association of Real Estate Brokers, said there must be specific instructions following the new degree to help tackle the legal obstacle. He added this legal grey area has caused problems in issuing ownership certificates for condotel, officetel, and resort villa products.