Da Nang City People's Committee has just issued a decision regulating the rental price of old houses belonging to public assets in the area. This decision will officially take effect from September 1st.
According to the new decision, the standard rental price for ordinary housing is specifically divided according to each level of housing based on the base salary of 2.53 million VND/month. Specifically, for first-class housing, the standard price is regulated at 31,900 VND/m2 used for one month. Second-class housing has a lower price at 29,500 VND, while third-class and fourth-class houses have standard prices of 28,500 VND and 19,200 VND/m2/month respectively. In case the Government adjusts the base salary, the rental price will also be adjusted accordingly according to this change rate through an appropriate salary adjustment coefficient.
To set the actual rental price unit for each square meter of usable area, the city applies a calculation formula combining the standard rental price with the salary adjustment coefficient and other auxiliary coefficients. These coefficients include the urban level coefficient, location coefficient by area, floor height coefficient as well as the technical infrastructure condition coefficient of the residential area. The new regulation clearly states that the principle of calculating rental prices will adjust up or down depending on these coefficients, but not exceeding the four types of coefficients mentioned above. The actual monthly rent payable by the lessee will be calculated by multiplying the total usable area of each type of house by the unit price after conversion.
Da Nang stipulates a 5% rent reduction for houses with remaining quality from 60% to under 70%, and renters will self-fund renovation to improve house quality to over 80%. The reduction will be increased to 10% if the remaining house quality is from 50% to under 60%, and renters will self-fund renovation to improve house quality to over 80%. However, the price reduction is only applied when the tenant has a written request and is approved by the management agency, and the renovated house part is still state-owned.
This new decision will replace Decision No. 37/2024/QD-UBND previously issued by Quang Nam Provincial People's Committee for the area before implementing the arrangement of administrative units. Da Nang City People's Committee has assigned the Department of Construction to preside over the implementation, coordinate with tax agencies, People's Committees of communes, wards and related units for management. In addition, Da Nang Housing Management and Exploitation Center will be directly responsible in the inspection, determination of rental prices and implementation of budget collection and payment in accordance with current legal procedures.
