Condotel projects in the central city of Da Nang (Photo: vietnambiz.vn) Hanoi (VNS/VNA) - The Ministry of NaturalResources and Environment (MoNRE) has sent a document to local departments toregulate the use and certification of non-residential real estate projects.
The use and certification of non-residential property such ascondotels have been a problem for years. The downtrend in the condotel segmenthas also been attributed to unsolved problems regarding land use certificatesfor investors.
In the document, which was sent on February 14, the ministrylisted some items regarding obligations and terms for non-residential propertyprojects.
According to Article 48 of the Law on Tourism 2017, condotelsand other non-residential real estate products are considered accommodation andfood businesses. They are bound by Decision 27/2018/QD-TTg issued by the PrimeMinister on July 6, 2018.
According to Item 2, Article 10 of the Law on Land andAppendix 01 attached to Circular 27/2018/TT-BTNMT issued by MoNRE on December14, 2018, property areas used for commercial purposes must be classified ascommercial land.
The use and terms of use for commercial land investors areregulated in articles 126 and 153 of the Law on Land. According to thearticles, institutional investors may rent and use the land for commercialpurposes for a maximum of 50 years. The term of use may be extended up to 70years for large-scale projects located in disadvantaged areas with low profits.
MoNRE’s latest document states if a non-residential propertymeets the transfer requirements regulated by the Law on Real Estate Trading, itis subject to Article 32 of Decree 43/2014/ND-CP dated May 15, 2014 by theGovernment.
MoNRE also asked provincial departments of natural resourcesand environment to review the licences given to local property sites regardingtheir purposes and terms of use.
The licences must assure investor’s obligations and interestsin accordance with existing rules, and the investor must not change the scale,purpose or planning of the project.
According to the HCM City Real Estate Association (HoREA), MoNREhad forgotten to include other types of non-residential real estate products inits latest document.
“The document only mentions condotels but ignores shoptels,”HoREA said in a statement sent to MoNRE.
HoREA asked MoNRE to amend the document to include theconcept of a shoptel, which are usually built inside resorts and sold tosecondary investors.
The association also suggested there must be a private areaand a shared area for each condotel and the price of condotels must be based onthose two areas just like regular apartments.
HoREA recommended the concept of a condotel must be amendedfrom “an accommodation apartment” to “a travel apartment”./.
The use and certification of non-residential property such ascondotels have been a problem for years. The downtrend in the condotel segmenthas also been attributed to unsolved problems regarding land use certificatesfor investors.
In the document, which was sent on February 14, the ministrylisted some items regarding obligations and terms for non-residential propertyprojects.
According to Article 48 of the Law on Tourism 2017, condotelsand other non-residential real estate products are considered accommodation andfood businesses. They are bound by Decision 27/2018/QD-TTg issued by the PrimeMinister on July 6, 2018.
According to Item 2, Article 10 of the Law on Land andAppendix 01 attached to Circular 27/2018/TT-BTNMT issued by MoNRE on December14, 2018, property areas used for commercial purposes must be classified ascommercial land.
The use and terms of use for commercial land investors areregulated in articles 126 and 153 of the Law on Land. According to thearticles, institutional investors may rent and use the land for commercialpurposes for a maximum of 50 years. The term of use may be extended up to 70years for large-scale projects located in disadvantaged areas with low profits.
MoNRE’s latest document states if a non-residential propertymeets the transfer requirements regulated by the Law on Real Estate Trading, itis subject to Article 32 of Decree 43/2014/ND-CP dated May 15, 2014 by theGovernment.
MoNRE also asked provincial departments of natural resourcesand environment to review the licences given to local property sites regardingtheir purposes and terms of use.
The licences must assure investor’s obligations and interestsin accordance with existing rules, and the investor must not change the scale,purpose or planning of the project.
According to the HCM City Real Estate Association (HoREA), MoNREhad forgotten to include other types of non-residential real estate products inits latest document.
“The document only mentions condotels but ignores shoptels,”HoREA said in a statement sent to MoNRE.
HoREA asked MoNRE to amend the document to include theconcept of a shoptel, which are usually built inside resorts and sold tosecondary investors.
The association also suggested there must be a private areaand a shared area for each condotel and the price of condotels must be based onthose two areas just like regular apartments.
HoREA recommended the concept of a condotel must be amendedfrom “an accommodation apartment” to “a travel apartment”./.
VNA
