Fixed-term apartment ownership not included in draft housing law

The Vietnamese government has not included regulations on a fixed term of apartment ownership in its draft revised Law on Housing.

In its Friday proposal to the National Assembly, the country's legislative body, the cabinet added regulations on a fixed term of apartment use, cases of demolition, and the responsibilities of stakeholders when demolishing, renovating and rebuilding apartment buildings.

This aims to form a legal basis for solving problems related to the renovation of old apartments in many localities, it said.

Ho Chi Minh City currently has nearly 500 apartment buildings built before 1975 that need to be repaired or rebuilt. Meanwhile, capital Hanoi hosts nearly 1,600 old apartment buildings and plans to renovate 10 old apartment areas in the next three years.

The lack of regulations on apartment use term has hindered investment in the repair and renovation of degraded buildings that are unable to accommodate more floors, the government said, adding that there is no method in place to calculate the value of resettlement apartments.

Earlier, the Ministry of Construction had proposed the government not include the regulation on limited-term apartment ownership in the draft law after acquiring feedback from lawmakers and the public.

Commenting on the draft revised Law on Housing, the National Assembly Standing Committee asked the government to not stipulate the term of apartment ownership, but have strict regulations on the competence, order and procedures for relocation and demolition of old apartment buildings.

Fixed-term apartment ownership had been mentioned in the previous drafts of the law and received mixed opinions. According to experts, the apartment ownership term regulation should not be included, because it greatly affects the interests of people and the operations of real estate businesses and the market.

Regarding foreign organization and individual house ownership rights, the government proposed maintaining the regulation that foreign individuals in Vietnam may purchase and own separate houses and apartments. Meanwhile, foreign organizations are not permitted to own houses attached to leasehold rights.

The current Law on Housing, adopted in 2014, allows foreign individuals in Vietnam to buy and own separate houses and apartments in permitted areas. Homebuyers are granted certificates of land use right and ownership of houses and other land-attached assets in accordance with the land law.

Under the current rules, foreign organizations and individuals cannot own more than 30% of the total number of apartments in an apartment building, and no more than 10% of an individual housing project of less than 2,500 units.

According to statistics, about 3,053 foreign individuals and organizations have been granted apartment ownership certificates in Vietnam so far.

The draft revised Law on Housing includes 13 chapters with 196 articles, an increase of 13 articles compared to the 2014 version. The National Assembly is expected to discuss this bill at its next meeting in May.