'DON'T CUT LOSS WHEN THE MARKET SHOWS GOOD SIGNALS'

A representative of Hung Thinh Corporation said that the resort real estate market was showing many positive signals for investors.

 
Mr. Tran Quoc Dung - Deputy General Director of Hung Thinh Corporation shared his views on resort real estate product. He especially emphasized the importance of a flexible legal corridor for the development of this market in the context that tourism was expected to have a strong "rebound" after being affected by Covid-19.

Mr. Tran Quoc Dung - Deputy General Director of Hung Thinh Corporation.

- How does Covid-19 affect the resort real estate business?

 
The prolonged Covid-19 has seriously affected real estate business, especially in the resort real estate field, including projects that have been put into use or are about to be built or offerred.

 
Affected by Covid-19 pandemic for nearly 2 years with 4 outbreaks in Vietnam, in which the most serious in the 4th outbreak, all business operations have been almost "closed" in the third quarter. The tourism industry also fell into a state of "freezing", which directly affected investors. Income from exploitation and use of resort real estate is not available, does not create liquidity to continue investing, which causes many people to transfer to cut losses.

 
For the past time, economic recovery policies have been implemented drastically, showing signs of a quick recovery. In addition, the agencies and departments are also looking for ways to remove difficulties in terms of policies for enterprises, so we hope for a return to prosperity.

 
- Condotel is considered the longest "hibernation" product, even during the 4th pandemic, some investors offered to sell condotel apartments for 300 million less than the cost but no one bought. Where do you think is the bottleneck in this situation?

 
The prolonged Covid-19 pandemic is the cause of the "hibernation" in the condotel business. In addition, the issuance of certificates for condotel products has not been thoroughly implemented by localities despite State regulations. That is also one of the main reasons why many investors have been still confused with this model.
 

- What should be the role of local management for this product line?
 
 

In my opinion, the local management role should be based on the actual situation of projects with mixed functions to adjust accordingly and operate on the basis of issued laws.
 
 

In addition, in order to limit the risks of disputes between investors and individual investors, in addition to the investor's compliance with the law and project planning, there should be mechanisms and regulations to allow foreign individuals and organizations to purchase resort real estate like domestic individuals and organizations; concretize secondary transfer procedures. In particular, for the procedure for issuing certificate of condotel type, it is required to carry out according to the instructions forthe land use mechanism and issue certificate of building use rights with commercial and service functions.
 
 

The signed contract should clearly and closely stipulate the rights and obligations of the parties, especially provisions on the transfer and inheritance of contractual rights and obligations. The operation management regulations should clearly show the rights, responsibilities and exploitation interests of the investor at the time of signing the contract.
 

- How should the operation and relationship between employers and condotel owners be mentioned in the regulations of the state management agency?
 
In my opinion, the operation of projects with condotel tourist apartments definitely needs to issue a separate legal provision for operation management. The relationship between employers and investors is inseparable. Employers must commit to accompany investors and customers at these tourism projects when they are put into operation.

 
We also proposed condotel projects that do not establish a management board not to pay maintenance fees, but the employers must be directly responsible for the management in the principle of professionalism, transparency, accompanying with the owners.
 

Moreover, employers needs to commit in the contract to retain a portion of the area to do business with the investors and their customers.
 
- What has Hung Thinh Land done for the past time to maintain business operations in the difficult context?

 
We signed cooperation agreements with international operation management units and strive to speed up the completion of the infrastructure, at the same time speed up the construction progress to prepare for the trend of resort tourism that will explode again in the post-Covid-19 period.
 

Specifically, with Cam Ranh Mystery Villas resort project (Khanh Hoa), we cooperate with partner Wyndham to define the international standard of the project and exploit the potential of foreign tourists. In the near future, the enterprise will continue to cooperate with many similar units for its development strategy in the near future.
 
At the same time, we cooperate with Ho Chi Minh City Real Estate Association to make recommendations as well as advise so that the processes and procedures for granting books to customers are quickly implemented. At the same time, propose more issues on procedures and legal corridors to support customers with loan needs.

 
Also during this time, the company organized training for the staff of Sales Division (about 2,000 employees) on new trends, current resort real estate policy and legality issues, thereby helping the staff to better understand the values and trends that the company is contributing to the overall picture of Vietnam resort real estate.

Overall picture of Cam Ranh Mystery Villas resort villa.

 - With condotel products alone, what plans does Hung Thinh Land have to ensure a balance between business orientation and individual investor’s interests?
 

For the past 20 years, with the motto "Customer is centered", we always aim to meet the real needs of customers and Condotel products are no exception to this core value. With a series of successfully implemented projects, high re-purchase rate, the products developed by Hung Thinh Land bring a lot of value to buyers.
 

During the recent pandemic, we have implemented many programs to ensure the interests of customers such as: offering flexible payment methods such as real estate installment payment - a trend that makes it easier for young people to own housing. Or Hung Thinh also implemented a program to give away 5% cash on ttotal payment from the 2nd installment of the contract as a share during the Covid-19 period.
 
The majority of customers who choose our products highly appreciate these policies and believe in the project. We also listen to reviews and suggestions to make adjustments to better suit trends and customer tastes.

 
- What do real estate enterprises need to improve in management, operation and business to catch the boom of resort tourism in the coming time?
 

Resort real estate investment enterprises need to change their strategies to overcome difficulties, prepare and anticipate the growth of sea tourism and coastal products that are expected to thrive in the coming time.
 
In the immediate future, in the context of the still complicated pandemic, the most important thing is the safety of domestic and international tourists. Therefore, it is necessary to have the optimal type of resort apartment in design as a closed and private ecosystem, fully meeting the needs of safety and health protection.

 
In the long-term, enterprises need to have business policies to create a flexible mechanism for investors such as: policy of buying together with family and friends, adjusting a project/part of a project into a second home. Split the investment value by dividing the area but the design still ensures full utilities, or customers can complete the apartment in their own style...
 

In addition, the operation requires a professional management and exploitation unit for investors (franchise from international management units such as Wyndham, Marriott...can be applied).
 
 - What advice do you have for investors in the condotel segment right now?

 
The pandemic is gradually being controlled, most localities are transitioning to a new normal, opening their doors and attracting tourists. It is expected that the number of visitors will grow strongly, promising that resort real estate will be active again in the near future after a long time.
 

The difficult situation due to the pandemic for the past time has also gradually eliminated some short-term investors, creating a market towards a more sustainable, long-term investment. Therefore, investors need to be calm and have careful considerations to achieve the expected effect. Investors should reconsider the transfer to cut loss at this time when the market is showing positive signals like today.

According to vnexpress.net