Worried home buyers suffer?

People do not lose their houses

In the revised 2013 Housing Law drafted by the Ministry of Construction, two options are proposed for the term of the apartment building. The first option specifies the term of ownership of the apartment building, which is determined based on the useful life of the building in accordance with the law on construction. Accordingly, the apartment building is specified in terms of ownership period based on the use term of the building (50 years, 70 years). At the end of this use period, if there is a conclusion of inspection by a competent agency that the apartment building is no longer usable, the ownership of the apartment building will be terminated and the owners will demolish and rebuild the apartment building. live.

Option 2 stipulates the term of apartment ownership according to the provisions of the land law. In this option, the apartment building does not have a term of ownership, but it is stable and long-term according to the law on land.

Talking to PV Tien Phong, Mr. Nguyen Manh Khoi, Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that in many countries around the world, there are also regulations on the duration of home ownership. apartment buildings such as: China (70 years), Thailand (30 years), Singapore (90 years), USA (99 years) …

Condominiums with 50-70 years of use: Worried that homebuyers will suffer?  - Photo 1.

The proposal for a limited-term apartment building is creating mixed public opinion. Photo: Duy Quang

Mr. Khoi said that, on the positive side, stipulating the term of use of the apartment building helps to reduce the cost of apartment products, helping people diversify forms of housing ownership in accordance with their needs and economic ability. . In addition, this proposal helps the work of renovating and rebuilding old apartment buildings, embellishing urban reconstruction, ensuring the safety of property and people’s lives.

But on the negative side, this regulation may affect the psychology of home buyers because so far, a habit has been formed in the view that houses are long-term and permanent ownership.

Regarding the opinion about the fact that after 50-70 years, home buyers “empty-handed”, Mr. Khoi said that there is no such thing because the land ownership term is still for each household and people still enjoy the benefits. the value of land use levy in that apartment building.

Mr. Khoi, for example, after 70 years of apartment inspection, the quality is not satisfactory, the investor has to dam it and rebuild it. At that time, people here were given priority to buy their own apartments at the price minus the land use fee. If people have no need to buy it back, they can sell it back to the investor or sell it to people with other needs.

Mr. Khoi added that this is just a draft and the Ministry of Construction still has many stages such as: Submitting proposals to consult people, associations and organizing seminars to discuss this issue. This proposal will be submitted to the 1st National Assembly in October 2022 and submitted to the 2nd National Assembly for approval in May 2023.

Proposal is not suitable

Talking to PV Tien Phong, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association, analyzed that at this time, it is not advisable to apply the apartment with a term but only a limited time to use the apartment. when this work has been seriously degraded with a thorough quality inspection.

According to Mr. Chau, according to the psychology of the majority of Vietnamese people, they want to own long-term houses and the habit of using apartments has only been shaped in the past decade. This proposal may cause the apartment market to “disgrace”, even decline.

Lawyer Bui Minh Dang (Law Office of Minh Dang and Associates) said that the proposal for 50-70 year old apartments should be widely consulted. Only if the majority of people support it, it can be put into practice.

HoREA Chairman also said that, for apartment buildings after their useful life, the provincial housing management agency must organize the quality inspection of the work, but still have to ensure the ownership of the apartment and construction area. and land use rights of apartment house owners according to regulations on land and housing. However, not for the reason of housing, construction works have a useful life, but it is proposed to add regulations on the term of apartment ownership.

Mr. Su Ngoc Khuong, Senior Director of Investment Department of Savills Vietnam said: “Real estate has always been understood as an asset with added value in the future. If this proposal is applied, in the future it is likely to lead to the tendency that people will not choose apartments but switch to buying townhouses or units outside to ensure the long-term value of the property. This will affect the liquidity of the apartment market,” said Mr. Khuong.

Mr. Khuong also said that in the case of the 50-70 year expiry, if the work is dismantled at that time, the land valuation will be done and how to re-divide it to return it to the people. has also not been specified. If after 50-70 years, people do not know whether they will be resettled in place or resettled elsewhere, or do not know how much their remaining property value will be, it will be a big problem. In addition, the liquidation of the property and the auction to redistribute it to those who have apartments in that project also need a clearer explanation so that new investors can come in and buy the land and rebuild. on land.

Selling price of apartment with term will decrease

According to a survey of Tien Phong, there are two types of apartments in the market, which are long-term ownership and have a term of 50-70 years. Term-owned apartments are usually about 20-30% cheaper than long-term apartments because investors only have to pay 50-year land rent. Meanwhile, for long-term projects, investors have to pay more land use fees. Some people think that this proposal makes it easier for middle-income people to buy apartments. Que Son

Currently, apartment projects also have periodic remodeling plans, so after a period of 50-70 years, if the construction quality of the project is still guaranteed for people’s lives, it is necessary to extend the time. time of use based on the test results at that time. Along with that, to ensure the interests of the people, when the investor sells the apartment and the land use right according to the project term of 50-70 years, it is necessary to adjust the land use fee so that the final selling price of the product consistent with reality”, Mr. Khuong said.

According to Ngoc Mai

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