HCM City tightens licensing of condotels, resort villas
Local authorities have been asked to carefully consider the granting of new licenses to projects with condotels, following many problems that have been discovered.
The HCM City People’s Committee has sent a dispatch to departments, branches, urban area management boards and district authorities, requesting to comply with the Ministry of Construction’s (MOC) opinion on management of projects with condotels, officetels, shophouses and resort villas.
The legal framework for the specific types of real estate is still being further refined.
To manage these new types of real estate products, the Ministry of Culture, Sports and Tourism released a regulation on September 28, 2019. The Ministry of Natural Resources and the Environment on February 14, 2020 issued instructions on land use and the granting of certificates on the ownership of non-housing construction works.
In January 2020, MOC asked people’s committees of provinces and cities to grant certificates on land use rights and on the ownership of houses and other on-land assets to condotels and resort villas in accordance with current laws. It also asked to carefully consider the shifting of commercial and service works in general and condotels in particular into housing.
A lot of problems have been found during the process of building and operating of these real estate types. There are construction planning projects which clearly have condotels, officetels and resort villas, but don’t have clean figures about the population.
Problems and inadequacies have arisen in the operation and management of buildings with condotels and officetels because of many owners and users.
Meanwhile, there is a lack of legal binding regulations on the contractual relationship between primary and secondary investors. Local authorities are confused about granting documents on recognizing the ownership of condotels, officetels and resort villas.
When faced with difficulties in doing business with condotels, some investors want to shift condotels and officetels into apartments for living, thus putting pressure on technical and social infrastructure in the areas.
Therefore, MOC in late September 2020 released a document requesting local authorities to strictly comply with the current regulations on technical standards when considering licensing construction projects.
They asked to clarify the scale and construction floor area, the number of condotels, and the population criteria in arranging the functions of various types of real estate so as to set the criteria and requirements for technical and social infrastructure.
Prior to that, the Hanoi People's Committee also issued a written request to tighten the management of investment, construction, and business of condotels, tourist villas and officetels.
Phuong Anh Linh - Ho Van
The Ministry of Construction has asked provincial and municipal people’s committees to tighten management on condotels, officetels, resort villas and shophouses
With warnings from the Ministry of National Defence and Ministry of Public Security, the HCM City Real Estate Association (HOREA) believes that it is not the right time to allow foreigners to owns condotels and tourist villas.