Condotel Movenpick Phu Quoc in Kien Giang province. (Photo: wikiland.vn)Owners of condotel apartments who fully satisfy the conditionsunder the land law, construction law and the law on real estate business shallbe granted a certificate of ownership of land-attached construction facilitiesaccording to the commercial or service land area purpose.
On April 3, 2023, the Government issued Decree No. 10/2023/ND-CPon amending and supplementing several decrees guiding the implementation of theLand Law from May 20.
The land use term shall comply with provisions of Clause 3 Article126 and Clause 1 Article 128 of the Land Law. Owners of construction facilitiesshall take responsibility before the law for fully satisfying conditionsprescribed by the construction law and the law on real estate business.
The ownership term of the condotel depends on the purpose of landuse following current regulations but not exceeding 50 years of the ownershipterm for land allocated or leased by the State for commercial or serviceuse.
Buyers may only own land and apartments during the remaining landuse period, not for long-term use as residential land.
The Ministry of Natural Resources and Environment has urgedlocalities to grant ownership certificates to the buyers of condotels,officetels and resort villas, according to the Official Dispatch No3382/BTNMT-DD that the ministry has recently sent to the people's committees oflocalities.
The ministry has also asked the localities to create conditions oninformation technology infrastructure to carry out online administrativeprocedures for granting this certificate.
According to experts, Decree No. 10/2023/ND-CP will remove legalbottlenecks for investors and buyers of condotels, officetels and resortvillas.
Pham Duc Toan, General Director of EZ Real Estate Investment andDevelopment Joint Stock Company (EZ Property), said that the market hadexpected the new decree for a long time. When it comes into effect, it willopen a way of continuing development for many unfinished projects.
The Government's new decree has created a legal corridor forbuyers, making them feel safe in property ownership and value. It will create anew investment wave in the tourist real estate market.
For condotels, officetels and resort villas, transactions in thesecondary market are also simplified further. Buyers and sellers only neednotary offices to complete the transaction procedures. Before thedecree, besides working at the notary offices, the buyer also completedprocedures with the investor and paid a fee to the investor, Toan said.
Owners will also be protected under the Real Estate Business andHousing Law for operation management.
Nguyen Van Dinh, Vice Chairman of the Vietnam Real EstateAssociation, said that many investors expect Decree No.10/ND-CP and it createsa breakthrough in the synchronisation of the legal system.
With this new policy, the unfinished projects in major tourist andresort centres, such as Da Nang, Nha Trang and Phu Quoc, will benefit fromremoving legal obstacles, Dinh said.
Experts said that if legal problems in the condotel, officetelsand resort villa market are resolved, it can restore nearly 239 frozenprojects nationwide, with a total value of about 682 trillion VND (30 billionUSD).
According to the experts, it is necessary to study and issueregulations to ensure secondary investors' rights and interests when theyinvest in resort real estate projects. It makes the investors feel safe whenthey invest a lot of capital in resort real estate.
For many years, resort real estate development has been seen as away to develop tourism infrastructure to achieve the goals of the VietnamTourism Development Strategy.
According to this strategy, Vietnam targets to become anattractive tourist destination by 2030 and in the world's top 30 countriesin terms of tourism competitiveness.
The General Statistics Office reported that Vietnam's tourismindustry recorded a strong recovery with a year-on-year increase of 19 times inforeign tourists to 3.7 million in the first four months of 2023.
The number of domestic tourists during the period was estimated at38 million.
Total revenue from tourists was estimated at 196.6 trillion VND (8.3billion USD).
The strong growth of the tourism industry in the first four monthswill revive the resort real estate market after two years of losses due to theCOVID-19 pandemic and return on rental income will bring confidence toinvestors./.
VNA
