Construction term posing a new problem for the apartment market

Như Hạ |

Resolution 21-NQ/TW sets out a new approach to the life cycle of buildings, quality and value of apartments.

Resolution 21-NQ/TW opens up important orientations, which are the basis for the Government to amend inadequacies in the Land Law, Housing Law, and Real Estate Business Law, setting out a new perspective on real estate value, with the quality of works, infrastructure, legality and actual exploitation capacity increasingly being valued.

According to Mr. Tran Quang Trung - Business Development Director of OneHousing, instead of looking at new contents as separate regulations, it is necessary to put them in a larger goal: directing the market towards transparency, professionalism and sustainable development.

Immediately after Resolution 21 was issued, "apartment term" became one of the contents of particular interest to the market. Some interpretations lead to concerns that apartments will no longer be owned for long or people will lose ownership when the term expires.

Apartment term does not mean that when the term expires, people lose ownership rights. These are two concepts that need to be separated" - Mr. Trung analyzed.

Mr. Tran Quang Trung said that in reality, each project has a certain life cycle, depending on design standards, construction quality, materials as well as the maintenance and operation process. When the project degrades and no longer meets safety requirements, the need to renovate or rebuild is inevitable.

This problem is present in Hanoi, where many apartment buildings built decades ago have deteriorated, but the renovation and reconstruction process still faces many obstacles. According to Mr. Trung, a clearer mechanism on the life cycle of the project can create a favorable foundation for the reconstruction process in the future.

From a market perspective, this also makes the quality of the project a more carefully considered criterion when choosing assets. Buyers will need to look deeper into the factors directly affecting the ability to maintain the quality of the project over time such as investor reputation, design standards, materials, construction quality and management and operation capacity after handover.

According to the Vietnam Real Estate Market Evaluation Research Institute (VARS IRE), the project lifespan must be understood as a management milestone, not the time of automatic termination of ownership. The project lifespan should not be approached by applying a rigid number for every apartment building. The actual usage time needs to be determined based on design documents, construction quality, maintenance history, operating conditions and independent inspection results.

VARS IRE data shows that in Q2/2026 and the first 6 months of 2026, apartments accounted for about 70% of the new sales supply and 73% of the total market transaction volume. From a positive perspective, Resolution 21's emphasis on managing the life cycle of buildings and proactively rebuilding apartments when they expire may open up a new approach in developing apartment supply. Instead of letting degraded apartment buildings become long-standing bottlenecks, the early preparation of the reconstruction process will help create a proactive mechanism to replace and supplement supply, especially in developed urban areas where new land funds are increasingly limited.

When apartment supply is maintained continuously and is predictable, the market will have conditions to operate more balancedly between supply and demand. Limiting supply shortages in areas with high demand will contribute to reducing price pressure due to market imbalance, thereby improving people's access to housing and creating a foundation for a more stable and sustainable development of the real estate market.

Như Hạ
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