Major condotel project Cocobay Da Nang made headlines this week as its developer Empire Group announced it will stop paying buyers their annual returns starting next January. The group chairman Nguyen Duc Thanh told 1,700 buyers that due to financial difficulties, they won’t be able to honor their commitment to pay annual returns of 12 percent on their investment for eight years, leaving many of them burdened with bank debts. A similar story happened in Nha Trang Town earlier this year. Buyers of Bavico condotel project in the central Vietnam tourism hotspot have taken to the streets with banners many times to protest, demanding the 15 percent annual return on investment that the developer had promised them in 2015. The protests have been in vain, however. Experts have warned that the unusually high return rates promised by condotel developers sound too good to be true, and they usually are. Nguyen Tran Nam, chairman of the Vietnam Real Estate Association, said at a forum Wednesday that developers who promise returns of 12 percent or more only seek to take advantage of “greedy buyers” who lack knowledge of this type of property. “I believe that developers who promise high returns have to… Read full this story
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