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Will foreigners be allowed to buy condotels?

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Some experts have proposed allowing foreigners to buy condotels in Vietnam to attract the foreign cash flow.

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Some experts have proposed to allow foreigners to buy condotels

 

The proposal was unexpectedly made at the 2018 Real Estate Forum held on May 15 when participants discussed the legal framework for condotels. 

Nguyen Tran Nam, chair of the Vietnam Real Estate Association, and former Deputy Minister of Construction, said if the idea is implemented, Vietnam would be able to attract more foreign investment capital to the real estate market.

Sharing the same view, Dang Hung Vo, former Deputy Minister of Natural Resources and the Environment, said as foreigners entering Vietnam are allowed to own apartments and assets attached to land for 50 years, they should also be allowed to own condotels.

“Condotels are also construction work and there is no reason to prohibit foreigners from buying them. This is a good capital mobilization channel,” Vo said.

Le Hoang Chau, chair of the HCMC Real Estate Association, has sent a document to PM and relevant ministries, proposing to allow foreigners to buy condotels to improve the liquidity of condotels, mobilize more capital, and facilitatetourism development. 

Some real estate brokers said many foreign investors showed their interest in condotels in Vietnam. However, due to the unclear legal framework, they did not make transactions in their names, but in their relatives’ or friends’ names in Vietnam.

Vu Van Phan from the Ministry of Construction said when amending the laws related to the real estate market, MOC plans to create favorable conditions for businesses to develop this kind of resort real estate and allow foreigners to buy condotels. 

The Land Law will be amended, but some provisions will be kept intact. The land reserved for condotel development is commercial land which can be owned for 50 years. The duration can be extended once the 50-year duration ends.

Meanwhile, other experts disagree and say that most condotels are located in coastal areas, and if Vietnam allows foreigners to buy condotels, it will be like allowing foreigners to own Vietnam’s coastline.

Nguyen Chu Hoi, former Deputy Director General of the Sea and Islands Administration, said policymakers need to refer to the Marine Environment Law which sets regulations on the coastline corridor safety before making a decision. 

“If allowing foreigners to buy condotels, it’s a must to say clearly which areas they can buy,” Hoi said. 

Nguyen Van Duc, deputy director of Dat Lanh Real Estate, commented the proposal would benefit developers, but would create big problems for clients and national defence.

 

Source:  VietNamNet

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