From August 1, 2024, the Housing Law 2023, consisting of 13 chapters and 198 articles, officially took effect. The Law stipulates many new points on housing development, renovation, construction of old apartments, social housing and management and use of apartment buildings.
Mr. Tran Ngoc Duy - Deputy Director, Savills Hanoi Real Estate Management Department, commented that the Housing Law 2023 will help all activities in the market become more systematic, contributing positively to the market's recovery process.
The 2023 Housing Law also helps overcome the limitations in the old law, clarifying the subjects and duration of the project, construction quality, housing ownership rights, etc. In particular, in the field of housing project management and operation, the Law helps resolve common disputes between customers and management units, and more clearly stipulates the rights and responsibilities of related parties.
In addition, the Housing Law 2023 focuses on the quality of construction and services during operation. Regarding construction quality, instead of keeping the usage period fixed at 50 years as before, the new Law stipulates that the project usage period will be adjusted based on the actual quality of the construction, in order to promptly maintain and repair degraded projects.
In particular, the Housing Law 2023 has made important adjustments compared to the 2014 regulations, strengthening the legal framework, ensuring transparency in management and operation and protecting residents' rights.
The new law has added provisions on determining common and separate ownership in cases where the contract does not specify, helping to protect the rights of home buyers. The law adds methods of determining common ownership of equipment and components attached to balconies and loggias.
The clear separation between fire insurance and Management Board remuneration with service fee unit price helps residents better understand the purpose of using the fees.
The Housing Law, guided by Decree 95/2024/ND-CP, also requires investors to disclose the project's legal documents to buyers and lessees, including minutes of project completion acceptance, documents approving fire prevention and fighting acceptance results, approval notices from specialized construction agencies, and parking area drawings. This regulation may affect the project operation progress of investors and the supply of apartments to the market, but will ensure transparency, safety in operation and minimize risks for home buyers.
In addition, the classification of apartment buildings is strictly regulated and has more specific criteria, helping buyers correctly assess the quality of the project, preventing the situation of self-classification to push up apartment prices unreasonably.
Instead of the A, B, C class regulations, projects will be classified into 1, 2, 3. Classification will be based on 8 mandatory criteria including: Location, location of the apartment building; amenities within the apartment building; parking space; hallway, lobby; elevator; power supply; apartment; minimum criteria is compliance with construction standards.
Along with that are 5 additional criteria including: operation management services; environment; security, safety, fire prevention; green buildings, efficient energy use; digitalization and smart housing.
Mr. Tran Ngoc Duy - Deputy Director, Savills Hanoi Real Estate Management Department, said that the impacts of the Law will be long-term. In fact, this Law was applied 5 months earlier than the original plan. When the National Assembly approved the effective date of the Law, there were not many specific regulations and instructions. For example, Decree 95/2024/ND-CP guiding the new Housing Law was published on July 24, 2024 and Circular 05/2024/TT-BXD was issued on July 31, 2024.
