Participants include Mr. Nguyen Manh Khoi - Deputy Director of Real Estate and Housing Management Department - Ministry of Construction, Mr. Le Hoang Chau - President of HCMC Real Estate Association (HOREA), specialists, leading lawyers and representatives of real estate enterprises, including Hoang Quan Group (HQC).

Chairs Board of the Seminar “The Office-tel Market: Demand for Development and Legal Problems to Solve”

In order to open the seminar, Mr. Nguyen Tran Nam - Former Vice Minister of Construction - President of the Vietnam Real Estate Association (VNREA) said the appreciation of the potential and demand for development of the officetel market in Ho Chi Minh City, Hanoi and major cities of Vietnam. However, it is necessary to clarify the concept of officetel and raise legal problems so as to make recommendations to the relevant Ministries, propose orientations for the development of a legal framework for the transparent and sustainable development of the officetel market. 

Mr. Nguyen Tran Nam also proposes the issue of long-term ownership of officetel instead of only being issued a property ownership certificate within the 50 years.

Mr. Nguyen Tran Nam - Former Vice Minister of Construction - President of the Vietnam Real Estate Association (VNREA) is speaking to open the Seminar

At present, the nature of officetel is multi-functional. It is both an apartment (for living) and an office (for work or business purposes), therefore it causes many problems for managers, investors and customers in the approval process, licensing, investment and distribution and transaction of products.

During the discussion, the experts and lawyers have said that officetel is formed according to market rules and actual needs and supports the start-up policy of the Government. Therefore, it should be recognized as a development rule of market and prepared favorable legal corridor for the management as well as promotion this type of real estate.

With proposal of wide application for all three types of officetel, condotel and hometel, Dr. Truong Anh Tuan - Chairman of the Board of Directors - General Director of Hoang Quan Group, said that it is necessary to have the standard guiding circular of Ministry of Construction for shaping the officetel, condotel and hometel development for all projects. As a review organization, in co-operation with the Government and the Ministry of Construction, Vietnam Real Estate Association (VNREA) should to organize larger seminars to obtain many great ideas contributing to the clear and specific drafting of legal documents on officetel, condotel and hometel.

Dr. Truong Anh Tuan – President of Hoang Quan Group is presenting recommendations for the sustainable and long-term development of officetel, condotel and hometel markets 

Currently, besides the main segment is social housing, Hoang Quan Group is also expanding investment in other types of products to diversify revenue. In Ho Chi Minh City, Hoang Quan is co-investing with Indochina Real Estate Company at the Office - Retails - Officetel Golden King Building. It is located in Phu My Hung International Financial Center (District 7), Golden King is attracting many customers, investors at home and abroad. In addition, with the plan to invest in Ham Tien - Mui Ne Tourism Service Center of 198ha in Binh Thuan, Hoang Quan Group is also considering types of condotel and hometel in order to flexibly respond the needs of customers and investors.

In response to the mentioned suggestions in the seminar, Mr. Nguyen Manh Khoi, Deputy Director of the Department of Housing Management and Real Estate Market, Ministry of Construction said that in order to improve the legal framework and give the officetel concept, it takes time and specific roadmap because As there are many related factors such as legislation, construction standards, transport infrastructure, regional planning, etc., they should be reviewed and approved by the relevant authorities.

Mr. Nguyen Mnah Khoi – Deputy Director of the Department of Housing Management and Real Estate Market, Ministry of Construction

Accordingly, there will be five main problems that need to be resolved during the legal framework development for officetel:

1. The exact concept of officetel and its function is the stay combined office or residence combined office.

2. Ownership of officetel products is 50 years or long-term

3. It should be clearly defined the investor who is allowed to construct officetel on the planned land for housing purpose or planned land with mixed function.

4. If this type is determined as real estate for residential purposes, the investor shall pay other land use fee.

5. Officetel must have standards of separate design, electricity, water and infrastructure.

According to statistics of Cushman & Wakefield, in HCM City, there is about 40% of customers buy officetel as start-up enterprises and open representative offices, 10-15% of buyers for residence and business; the remainder is purchased for rental purposes by the investor.

Photo of Mr. Nguyen Tran Nam and experts, lawyers, representatives of enterprises at the seminar 

Previously, the Vietnam Real Estate Association (VNREA) held a seminar on the legal issues of the condotel type in Hanoi and received many opinions of experts as well as enterprises. Based on that, the Association has written proposals to the National Assembly, the Government, the Ministry of Construction and other relevant ministries to review and prepare legal documents in the next time.

Source: Hoang Quan Group