Hanoi Secretary: Need to regulate apartment term

According to Mr. Dinh Tien Dung, the regulation on apartment building time limits will reduce difficulties when renovating and rebuilding degraded buildings, limiting dangers for residents.

Citing the reality of the situation of apartment buildings, Hanoi Party Secretary Dinh Tien Dung said that people building extensions and reassembling to expand the area and using load-bearing structures is very dangerous if an incident occurs. "Being a leader is very stressful and exciting. We must definitely renovate old apartments, combine it with urban reconstruction and set a deadline," Mr. Dung said when discussing the difficulties in the mechanism for renovating and constructing old apartments in the group discussion session on the Housing Law on the morning of June 5.

Article 62 of the draft states that the provincial People's Committee is responsible for allocating funds from the local budget to establish, appraise, and approve planning; and implementing projects to renovate and rebuild apartment buildings using local budget capital in the area.

According to Mr. Dung, such regulations are unreasonable and are contrary to the provisions of the Budget Law. "Old apartments are owned by the people, owned by individuals, how can the budget be invested here, it must be associated with urban reconstruction and have a prescribed time limit to solve the problem", Mr. Dung said.

The Secretary of the Hanoi Party Committee said that when buying apartments, people need to understand and accept that the apartments they buy only have a certain duration. After that time, the apartment will deteriorate, break down, and may even collapse. At this point, the State must take responsibility, which is unreasonable. Therefore, the harmonization of interests needs to be calculated.

Secretary of the Hanoi Party Committee Dinh Tien Dung. Photo: Hoang Phong

The Hanoi Secretary said that when the apartment building is built within a certain time limit, the State's responsibility will be more clearly defined, and the lives and safety of the people will also be protected. The forced construction is normal and in line with their interests.

Giving his opinion on how to handle old apartments, Mr. Dung said that it is necessary to renovate each area of 4 to 5 buildings. For example, an old apartment building with 5 floors can be demolished and only 2 buildings built with 20-35 floors can be built to accommodate residents. This will help residents have more space below for living and commercial activities, and investors building high-rise buildings will also have more profit.

Delegate Hoang Van Cuong (Vice Principal of National Economics University) also said that the current old apartment buildings are low-rise, and demolishing them and building high-rise buildings will generate profits and attract investors.

"But all the apartments in the future will be high-rise buildings. When they are demolished, there will be no more profit factor. At that time, no investor will be foolish enough to put money into them," Mr. Cuong analyzed, saying that at some point, high-rise apartments cannot be renovated even after their term has expired.

Old apartment building G6A Thanh Cong, Ba Dinh district, Hanoi. Photo: Pham Chieu

Therefore, he agreed with the old draft of the Ministry of Construction that the apartment building must have a term according to the life of the building. After the term expires, the house is still inspected and is still in good condition, so it can continue to be used, but if it is not safe, it must be demolished. In addition, delegate Cuong also said that home buyers will also benefit if the apartment building has a term because the selling price will be reduced.

He also proposed that along with the term of the apartment building, the land for construction should not be handed over permanently, but leased for 50-70 years. "Once leased, the renovation and demolition will be completed, and there is no need for repossession. The land rent is also cheaper than the land allocation fee, which helps to significantly reduce the construction investment costs of enterprises, and the housing prices are also more suitable," said Mr. Cuong.

Meanwhile, delegate Hoang Duc Thang (Deputy Head of Quang Tri Delegation) had the opposite opinion. He proposed to keep the draft unchanged, with apartment ownership having no time limit, linked to the right to long-term stable land use, in accordance with the constitution and current laws.

"People want to own apartments without a time limit. If the usage time expires, the apartment development program will not be successful due to the mentality that only with land can one own a house," said Mr. Thang.

The proposal to have a limited ownership period for apartments was previously mentioned in previous drafts of the Housing Law (amended) and received many opposing opinions. According to experts, there should be no regulation on the duration of apartment ownership, because it interferes with ownership rights, greatly affecting the interests of the people and the business of enterprises and the real estate market.

The National Assembly Standing Committee, when commenting on the Housing Law (amended), suggested that the Government review and not stipulate a term for apartment ownership, but should have strict regulations on authority, procedures for relocation and demolition of old apartment buildings. If the Government deems it necessary, it can submit to the National Assembly other opinions, but must clarify the political, legal and practical basis, assess the impact and analyze the advantages and disadvantages of each option for the National Assembly to discuss.

Son Ha - Hoai Thu

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