Condotel sales at their lowest in six years in 1Q
HANOI: The condotel market is facing liquidity issues, with sales at their lowest level in six years in the first quarter of the year.

Condotel or hotel condos are buildings that are a condominium but operate as a hotel, offering short-term rentals, and which maintains a front desk.

Around 90% of condotel projects in the country saw no sales during the period, according to a report by property consultancy DKRA Group.

Out of the 4,800 condotel units available for sale nationwide, only 64 units were sold in the period, representing just 1.3% of the total.

In popular tourism destinations such as Da Nang, condotel sales have plummeted to a 10-year low, it said.

Developers are trying to boost demand by offering various support policies, but they are still struggling to attract buyers.

One of the main reasons for the lack of sales is the high prices of condotels, which remain around 150 million dong (US$6,000) per square m.

Developers are hesitant to lower prices due to heavy investments in high-end projects targeting affluent customers, experts said.

They also predicted it could take five to seven years for the condotel market to recover fully, as slow economic growth and limited tourism revenue continue to impact the sector.

They said residential properties that meet essential needs will bounce back sooner than resort properties such as condotels.

A lack of a legal framework for condotels, along with developers failing to fulfill profit commitments for investors, has contributed to low confidence and demand among buyers.

To rebuild trust, experts recommended establishing specific regulations for condotel standards and ensure developers keep their profit commitments.

While a decree was issued last year allowing ownership titles for condotel buyers, further guidelines are needed to facilitate the market’s recovery, experts noted.

Currently, there are over 240 tourism property projects with more than 114,000 condotels valued at 297 trillion dong nationwide, according to the Vietnam Real Estate Association. — Viet Nam News/ANN
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The condotel market is facing liquidity issues, with sales at their lowest level in six years in the first quarter of the year.