On August 19, at the program of the First Extraordinary Session, the National Assembly listened to the submission and appraisal report on policy orientations for amending the 2023 Housing Law. Presenting the submission, Member of the Party Central Committee, Minister of Construction Tran Hong Minh said that regarding housing ownership, the draft stipulates "dead-end apartments" according to the term of use of construction works according to the provisions of construction law, associated with ensuring property rights. Apartment owners are entitled to fulfill financial obligations to build new apartments according to regulations when the term expires.
Commenting on this issue, the Vietnam Real Estate Market Evaluation Research Institute (VARS IRE) said that in the process of discussing new policies, the most easily misleading phrase is "term apartment". If not fully explained, people may understand that after a certain period of time, apartment ownership will automatically end. However, this understanding does not reflect the true nature of the issue.
According to VARS IRE, the technical life cycle of a building is understood as the time a building can be used, determined based on design documents, construction quality, operating and maintenance conditions, and actual inspection results.
Along with that is the concept of legal property rights of the owner. The right to own an apartment, the right to use the common land and related arising rights are rights protected by law, which cannot be automatically lost just because the project reaches a technical milestone.
When completing the new mechanism, it is important to avoid the understanding that the project lifespan is a "countdown clock" for property rights. A more appropriate approach is to define the design lifespan as a mandatory management and inspection milestone.
When it reaches that point, the project needs to be re-evaluated for safety. If it still meets technical requirements, the project can continue to be used according to professional conclusions and appropriate maintenance plans. If forced to dismantle, the rights of the owner need to be converted into rights and interests in the reconstruction process.
From this perspective, it is necessary to clearly establish three layers of rights, including: the common land use rights of apartment owners - a legal basis attached to the construction land area of the project; the right to own the apartment and the common ownership part while the project is still safe - the direct property rights that people have formed through legal purchase and sale transactions; and the right after the project must be demolished and rebuilt, including the right to participate in the reconstruction process, the right to receive a new apartment or the corresponding value, along with the rights to transfer, inherit, and mortgage according to regulations.
Mr. Nguyen Van Dinh - Vice Chairman of the Vietnam Real Estate Association said that this is an important orientation in completing the legal framework for apartment buildings, aiming to solve long-standing problems in the renovation and reconstruction of old apartment buildings, and at the same time improve the efficiency of urban land use.
However, this is also a policy that has a direct impact on market sentiment, people's property rights and the development trend of real estate segments. Therefore, policies need to be designed with appropriate roadmaps and implementation mechanisms.
To make this regulation truly come into life, it is necessary to continue to clarify important contents such as: how to determine the lifespan of works based on technical standards; conditions, procedures and authority to determine works that have expired their lifespan; mechanisms for contributing capital and fulfilling financial obligations when rebuilding apartment buildings; rights of owners after works are newly built; handling plans for cases of disagreement or insufficient financial capacity to participate. These are decisive factors determining the feasibility of policies, while creating trust for people and the market.
