29.07.2020, 23:35

HoREA recommends that the condotel be issued a red book, not legalized into a house

The Ho Chi Minh City Real Estate Association (HoREA) has just sent a proposal to the Prime Minister and relevant ministries about the finalization of the legal framework to adjust the type of condotel project. The association proposes to unify the use of the concept of a condotel and to supplement the type of tourist accommodation that is a tourist townhouse.

HoREA recommends that the condotel be issued a red book, not legalized into a house

Cocobay – a condotel project that stops paying as committed to profits. Photo: CĐT

Issue a red book for a limited time to condotel

According to statistics from HoREA, the whole country has about 82,900 condotels, 28,100 tourist villas and 15,660 tourist townhouses. Condotel projects are concentrated mainly in localities with tourism strengths such as Hanoi, Ho Chi Minh City, Da Nang, Thanh Hoa, Binh Dinh, Khanh Hoa, Binh Thuan, Kien Giang, Quang Ninh, Ba Ria – Vung Tau. Total investment capital in projects is estimated at VND 100,000 billion.

In the 2008-2013 period, condotel project investors only implemented the method of mobilizing financial capital of investors to implement the project and distribute profits and risks according to the proportion of capital contribution; Do not raise capital, or sell future “condotel” apartments to customers.

From 2014 to now, condotel project investors have mobilized capital, sold condotel formed in the future to customers who are secondary investors, in the condition that the State has not completed the legal framework to adjust the type. Figure this project. Currently, the law does not specify the private ownership, common ownership of the condotel as a basis for issuing the red book. Although the Ministry of Natural Resources and Environment has issued documents guiding localities to issue red books to condotels, so far, customers have not been issued red books.


HoREA expressed agreement with the Ministry of Natural Resources and Environment on issuing a red book for a condotel. Regarding procedures and procedures, firstly, the project owner applies for the red book of condotel project. After performing the condotel sale contract, the investor proceeds with the procedure of changing the name on the red book to the investor. This is similar to issuing a red book for apartments of a commercial housing project. When the land use term expires, the investor may extend it if necessary, according to the land law.

Regarding the transitional handling, the Association proposed to consider and deal reasonably with previous cases of condotel customers who have been issued with a permanent red book of permanent residential land without forming a residential unit, but is now revoked and reissued with a red book for a limited time. HoREA proposes to consider calculating the land use term for condotel buyers from the date the project decides to allocate land.

Not legalizing condotels as houses

Recently, the Ministry of Public Security proposed to strengthen the state management of condotel projects, tourist villas, office and accommodation (officetel), not legalizing these types of housing.

HoREA said it agreed with the recommendations of the Ministry of Public Security, because legalizing condotel projects into housing would disrupt planning, increase pressure on urban infrastructure, reduce the value of The whole region is planned to develop tourism, business services, commerce and reduce sustainable revenues for the state budget.

The Association realized that the planning work and adjustment of the planning were strictly and synchronously prescribed by the Planning Law, the Land Law, the Construction Law, and the Urban Planning Law. However, in practice, many areas have been planned for tourism development, but now they are no longer suitable, they can still be considered for adjusting land use plans to other land use purposes. The adjustment of the planning must ensure the compliance with the law, be based on scientific and practical basis and must strictly follow the approval process.

Source: ndh.vn