Resort real estate is expected to “thaw” thanks to Decree 10/2023/ND-CP, which was recently issued (April 3). Notably, the regulation on land use rights certification for construction works used for tourism accommodation purposes (condotel, officetel, resort villas) is noteworthy.
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| Perspective of a Condotel project under construction in Vung Tau City. |
Untie the knot
Decree 10/2023/ND-CP, effective from May 20, amends and supplements many contents of Decree 43/2014/ND-CP detailing the implementation of a number of articles of the Land Law. Notably, Clause 5, Article 32, related to the certification of ownership of non-residential construction works, with new regulations on granting certificates of ownership of condotel apartments.
Specifically, constructions used for tourist accommodation purposes built on commercial and service land, if meeting all conditions prescribed by the law on land, the law on construction, the law on real estate business, will be certified for ownership of construction works attached to the land according to the purpose of commercial and service land use; land use term as prescribed in Clause 3, Article 126, Clause 1, Article 128 of the Land Law.
When granting a certificate of ownership of a condotel apartment, the buyer is only allowed to use the land and own the apartment during the remaining land use period of the investor, and cannot use it stably and permanently like residential land.
It can be seen that the new decree of the Government has partially removed the bottleneck of the resort real estate sector, which has been facing many difficulties in recent times.
Lawyer Nguyen Canh, Director of Nguyen Canh Law Company Limited (Vung Tau City) said that with the new regulation, the Department of Natural Resources and Environment has enough legal basis to grant Certificates to tourist apartments when investors meet all conditions. From there, it will remove a series of obstacles in tourism accommodation projects built independently on commercial and service land, ensuring the legality of these types of assets.
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| Condotel projects in Ba Ria-Vung Tau are an attractive real estate segment for many investors. In the photo: Perspective of a corner of the Lagoona Binh Chau resort project (Xuyen Moc district). |
Resort real estate will develop healthily
Mr. Nguyen Van Trinh, General Director of Dai Phuc Real Estate JSC (Vung Tau City) said that currently, the parties involved in transactions with the type of tourist apartment real estate are mainly based on voluntary agreements by apartment purchase and sale contracts between investors and buyers. However, this purchase and sale and transfer is being limited and facing many obstacles due to the lack of a legal framework for implementation, especially the granting of separate ownership certificates to buyers.
Enterprises expect Decree 10/2023/ND-CP coming into effect will help the resort real estate market revive. “The biggest obstacle for developers and investors today is the desire to buy tourist apartments with clear legal status. Decree 10/2023/ND-CP is a very good policy, which has relieved concerns and worries and is also an issue that needs to be implemented for the resort real estate market to develop healthily,” Mr. Trinh further analyzed.
Meanwhile, according to Mr. Le Viet Lien, General Director of Ba Ria - Vung Tau Housing Development Joint Stock Company (HODECO), if the red book is granted, condotels will have a clear "identity", and the liquidity of resort real estate will be improved. "Moreover, we are waiting for the Decree to take effect to ensure the rights of both businesses and investors," Mr. Lien said.
From the above analysis and assessment, it can be seen that being "untied" legally, the most important of which is granting red books for types such as condotel and officecel, will be the motivation for investors to speed up project completion, find customers, thereby stabilizing the resort real estate market.
According to the Department of Natural Resources and Environment, after Decree 10/2023/ND-CP was issued, Ba Ria - Vung Tau province is promoting the invitation of experts from the Ministry of Natural Resources and Environment to implement and provide guidance to soon put the new regulations into practice.
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| The Song (Vung Tau City), one of the large condotel projects in Vung Tau City. |
Article and photos: QUANG VU
| According to statistics from the Vietnam Real Estate Association, the country currently has 239 tourism real estate projects, with about 114,000 condotels, estimated value of VND 297,000 billion; nearly 24,400 resort villas, estimated value of VND 244,000 billion; nearly 30,900 shophouses (commercial townhouses), estimated value of VND 154,000 billion. The total value of these 3 types of resort real estate is estimated at more than VND 681,800 billion, equivalent to about 30 billion USD. Resort real estate is concentrated in localities such as Nha Trang - Khanh Hoa, Phu Quoc - Kien Giang, Da Nang and Ba Ria - Vung Tau. |
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