Proposal for a new calculation method for the term of apartment use
Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association - said that the institutionalization of Resolution 21 into the draft Housing Law (amended) will overcome the subsidy mechanism, linking benefits with financial obligations of owners when rebuilding apartments that have expired.
Therefore, Mr. Le Hoang Chau proposed that the draft Law on Housing (amended) should focus on the "term of use of apartment buildings" to avoid the understanding that people are limited in ownership rights. Accordingly, an apartment building not only has apartments for living but also includes many other types of areas serving commercial, service, and accommodation purposes such as commercial areas, offices (offices), office-combined accommodation areas (officetels), tourist apartment areas (condotels)... Therefore, the term of use should be calculated for the entire project, including both apartments and other functional areas, according to the construction term.
According to Mr. Le Hoang Chau, it is necessary to recognize the reality that the "lifespan" of the project includes the design lifespan and the actual lifespan, in which the actual lifespan may differ greatly depending on the quality of construction and maintenance work. From there, it is necessary to make recommendations to regulate the termination of ownership rights more clearly.
The condition that "the ownership of the apartment building terminates when the apartment building must be demolished" must be accompanied by the condition that "the owners no longer occupy or use the project". Because in fact, at the time of the demolition decision, the project may not have been demolished, residents are still living and the compensation and resettlement plan has not been completed.
Clarify the mechanism for real estate businesses to participate in capital contribution or investment with residents
HoREA also proposed that the draft Housing Law (amended) stipulate the term of use of apartment buildings according to the construction year applicable to newly built apartment buildings to be consistent with Resolution No. 21. Not retroactive, not stipulating the effective date or earlier for apartment buildings built from 1995 to before the time the (new) housing law takes effect so that the owners of these apartment buildings also enjoy the mechanisms and policies according to regulations on renovation and reconstruction similar to the owners of apartment buildings built from 1994 or earlier.
Previously, the mechanism for renovating old apartment buildings was often heavily "subsidized" when the State had to bear most of the costs from inspection to resettlement. With Resolution 21, this responsibility has been closely linked to the rights of owners: Residents have the right to fulfill financial obligations to build new apartment buildings when the old building expires. If they want to continue to have a modern new place to live on the old land, people must make financial contributions instead of automatically waiting for full support from the budget or investors.
Therefore, according to HoREA's recommendation, it is necessary to supplement regulations allowing owners to fulfill financial obligations to rebuild apartment buildings when their term of use expires, and at the same time clarify the mechanism for real estate businesses to participate in contributing capital or investing with residents to demolish and rebuild apartment buildings. HoREA recommends that only in cases where residents do not have sufficient financial capacity or cannot choose suitable investors, the land handover plan to the State to organize project reinvestment should be implemented, in order to ensure the rights of owners.
It is also necessary to supplement regulations on support and resettlement for all cases of compensation; and at the same time clarify cases where apartment buildings are not rebuilt "at the old location" to have a basis for determining handling plans, ensuring people's rights when they have to relocate and resettle.
Resolution No. 21-NQ/TW of the Party Central Committee (referred to as Resolution 21, issued on July 28, 2026) sets out the orientation: allocating land for a long term for commercial housing construction for sale, prioritizing mainly apartment buildings. In which, for newly built apartment buildings, regulations on the term of use of apartment buildings according to the construction year of the project, associated with ensuring property rights, apartment owners are entitled to fulfill financial obligations to build new apartment buildings according to regulations when the term expires.
