‘The proposal to own an apartment for 50 years is not appropriate’
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‘The proposal to own an apartment for 50 years is not appropriate’

Recently, in the outline of the Housing Law (amended), the Ministry of Construction has proposed to stipulate that the apartment use term is only 50-70 years instead of the long term as before.

The reason for the above proposal is that, according to current regulations, the useful life of the project is determined according to the construction design documents or the actual useful life.

Since its announcement, this proposal has faced strong reactions from real estate experts.

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) suggested not adding regulations on apartment ownership duration to the draft outline of the Housing Law (amended).

Mr. Chau said that, considering the psychology of the vast majority of Vietnamese people who want to own long-term housing and the habit of using apartment buildings has only gradually been shaped in the past decade, this proposal

Chairman of HoREA further analyzed that for apartment buildings that have expired, the provincial housing management agency must organize quality inspection of this project but must still ensure ownership of the apartment and construction area.

Apartment market in the East of Ho Chi Minh City.

Meanwhile, Mr. Su Ngoc Khuong, Senior Director of Investment Department of Savills Vietnam, said that from the perspective of construction according to Vietnamese standards, the lifespan of a level 1 project is over 100 years,

According to Mr. Khuong, there are two important issues to consider regarding this proposal.

This proposal shows that after 50-70 years, the right to dispose, own and use assets on land will end according to the term of the project.

Besides, this expert also said that there are two sets of laws that need to be referenced: the Land Law and the Construction Law.

Mr. Khuong believes that from a sociological perspective, regulating the term of apartment projects can partly support the process of relocating people living in degraded apartment buildings in big cities like Hanoi.

However, in terms of planning in large cities, apartments are a globally applied solution to the housing problem in compact cities.

Real estate is always understood as an asset with increased value in the future.

Mr. Khuong also pointed out that, in the case of the expiration of 50-70 years, if the project is dismantled, at that time, the land valuation will be done and how to re-divide it to return to the people.

The liquidation of assets and auction to redistribute them to those who own apartments in that project now needs a clearer explanation so that new investors can come in and buy back the land and build on the land.

According to Savills Director, current apartment projects also have periodic renovation plans.

And Mr. Le Net, Arbitrator of the International Arbitration Center, said that the proposals for apartment buildings to only be owned for 50-70 years should be widely consulted to see the level of consensus of the majority.

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