This study assess opportunities and challenges of condominium housing in Hawassa City, south Ethiopia, with the consideration of the pre-and post-transfer issues. The majority of residents in condominium houses indicated that their current housing situation is better than their previous houses. The study also indicated that condominium houses are better suit for households with fewer family members. The designs for external appearance and aspect of the condominium buildings, and the internal partition and arrangement of the rooms have hardly satisfied the residents. Common land and common facility usage, noise pollution, waste and sewage disposal, house-maid and children related issues are some of the major causes for inconvenient neighborhood relationships. The criteria set to transfer the condominium houses to the beneficiaries was observed less practical. Discrepancy has been observed between the criteria set for handing-over the condominium houses to the beneficiaries and the actual handing-over process. The study also concluded that the poorest segment of the community was not in a position to own condominium houses because of affordability problems.