Business

Will lower house prices?

Owner’s rights are still guaranteed

Regarding the proposed content of regulations on the 50-70 year term of apartment ownership, which caused a stir recently, the Housing and Real Estate Market Management Department, the Ministry of Construction has spoken out on this issue. .

Specifically, according to this agency, when submitting to the Government for an application for amendments to the 2014 Housing Law, the Ministry of Construction proposed to add a new regulation on the duration of apartment ownership in the content of the policy on housing ownership. house ownership instead of the current long-term ownership regulations.

Accordingly, the Ministry of Construction has proposed two options and has been approved by the Government, reporting to the National Assembly to propose to include them in the National Assembly’s Law-making Program in 2023 (in Report No. 53/TTr-CP dated 28/28). March 2022).

Specifically, option 1, supplement, stipulates that the term of ownership of an apartment building is determined according to the duration of use of the work in accordance with the provisions of the law on construction.

Option 2, the term of ownership of the apartment building is determined according to the land use term for the construction of the apartment building in accordance with the land law.

Regarding this proposal, the Ministry of Construction said that there are currently some conflicting opinions. In addition to the opinions agreeing with the proposal of the Ministry of Construction, there are also concerns because it is not clear how this time limit will affect the rights of the owner in the future.

Specifically, such as the issue of inheritance, leaving property for descendants or when the ownership expires, people’s accommodation will be resolved. There are even concerns about the phenomenon that people will switch to buying individual houses instead of buying apartments due to the current mentality of wanting to own long-term real estate assets.

Long-term apartment ownership: Will it reduce house prices?  - Photo 1.

According to the Ministry of Construction, the proposal to amend the policy on the duration of apartment ownership as mentioned above is based on many bases, both in terms of requirements in the management and use of the apartment building, as it is related to the properties and lives of many people, on the basis of the actual difficulties and obstacles in the implementation of the current policy of renovation and reconstruction of apartment buildings and with reference to the experiences of many countries around the world. .

For option 1, the Ministry of Construction proposes that the apartment building ownership term is determined according to the useful life of the work based on a number of bases.

Firstly, stemming from the characteristics of the apartment building, which is a typical large-scale project, with many people living, over time, the building will be degraded, no longer ensuring safety during construction. user program.

Therefore, at the end of the useful life according to the provisions of the law on construction or before the expiry date of these works, they are degraded, the competent authority will inspect and evaluate the quality.

If the work is still usable, it will continue to allow the use according to the conclusion of the competent authority; If the building no longer ensures the safety of the life and property of the owners, the users of the apartment building will have to demolish it to rebuild.

The Ministry of Construction said, when the life cycle of the apartment building is no longer (due to being demolished), the ownership rights of the owners to this apartment building will also end because the property is recognized as ownership. no longer in fact.

“The above regulation is also consistent with the provisions of the civil law. Accordingly, property ownership will be terminated when the property is destroyed or terminated in accordance with the law”, the Ministry of Construction said. said.

Secondly, from the current situation of renovation and rebuilding of old apartments in recent times, the Ministry of Construction said that many cases of apartment buildings have expired, the quality is seriously degraded, affecting the quality of the apartment buildings. affect people’s lives and properties, but it is very difficult to relocate, demolish to rebuild.

“Because people believe that the ownership of this residential property is permanent, the right to demolish is decided by the owners, although the civil law already stipulates the ownership and use of property by the owner. Owners must not affect the properties of other owners, especially adjacent properties,” said the Ministry of Construction.

Currently, in addition to the development of new apartment buildings to meet the needs of the people, in the coming time, it is also necessary to consider and take into account the handling of apartment buildings built in the previous period. expired, and the quality is no longer guaranteed to be safe, the Ministry of Construction said.

Third, according to the Ministry of Construction, the proposed regulations on the duration of apartment ownership still ensure the interests of people living in apartment buildings. Because in the above policy proposal, the Ministry of Construction has also proposed specific situations to handle.

Accordingly, people are still able to exercise the rights of property owners such as buying, selling, giving, and inheriting during the apartment building period.

After the expiry date of the works, if the quality inspection results of the apartment building are still safe, the owners will continue to own them according to the time limit stated in the inspection conclusion of the competent authority. permission.

In case the apartment building must be demolished for rebuilding, it will be handled according to the policy on renovation, demolition and reconstruction of the apartment building, the residents who currently own the apartment building (such as the former owner or the buyer, donation, inheritance, etc.) still have the right to resettle at the old location without having to move to another place.

Long-term apartment ownership: Will it reduce house prices?  - Photo 2.

As for the case where the State has planned to build public works or security and defense works at the old location, the people will be resettled at another location according to the general resettlement policy of the State. .

Fourth, the Ministry of Construction said that the proposal to regulate the term of ownership of an apartment building according to the term of use of the apartment building does not mean that the apartment building only has a term of 50-70 years.

Currently, according to the provisions of the law on construction, the useful life of the work is determined according to the construction design documents (design life) and the actual use term.

The design life of the building must be clearly stated in the design documents and related documents (it can be 50-70 years or longer depending on the specific project). At the end of the useful life, the competent authority will inspect and evaluate the quality of the work to allow it to continue using or demolish for rebuilding.

Thus, the term of ownership of an apartment building may be 50 years, 70 years or it may be longer than 80 years, 90 years… depending on the quality of the work, said the Ministry of Construction.

Will reduce housing prices

Sharing about this issue, Prof. Dr. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that this proposal is very necessary to completely solve the situation of old apartments that have deteriorated, but it is difficult to Renovating because people do not accept the compensation offered by the investor.

“Owning an apartment for a limited time will solve many conflicts. However, the value of current apartments not only includes apartment buildings but also includes the value of the land. Land for construction of apartments is stable and long-term residential land like land for building townhouses, it is necessary to have a plan to calculate the land price for apartment buildings with a fixed term”, Prof. Dang Hung Vo said.

Mr. Vo further analyzed, the useful life of each apartment should only be 50 – 70 years depending on the quality of construction of each project, including long-term housing and with a term of 50 – 70 years. Each type of house based on the time of ownership will have different tax rates and land prices. Long-term home ownership will have the highest taxes and land fees.

Long-term apartment ownership: Will it reduce house prices?  - Photo 3.

Mr. Nguyen The Diep, Standing Vice Chairman of Hanoi Real Estate Club analyzed, we have always had the mindset of “eating well and wearing durable”, so the house is a great asset and is owned for a long time, but over time. The apartment use space will be degraded. While the process of urbanization in Vietnam is now very fast, along with that, people’s living standards are demanding higher day by day. Therefore, old urban areas that have expired also need to be renovated and built new. This ensures the safety of the people as well as beautifies the face of the city.

“Current apartments with a shelf life of 50 years are cheaper than the long term by 20-30% or more. Because the investor only has to pay the land use fee for 50 years. Therefore, the apartments that were built before and have long-term use value need ingenious calculations, clear roadmaps and solutions so that owners do not feel disadvantaged, “said Mr. Diep.

According to Mr. Diep, the above production will not lead to people turning away from apartment products but looking for products with long-term use value such as housing and land. Because, the regulation of apartments with a term will reduce the selling price of houses, thereby helping people to have easier access to housing. Along with that, the Ministry of Construction can encourage real estate developers to build rental apartments, tenants pay monthly or yearly. This will help people reduce financial pressure, have more idle money to invest in other fields contributing to economic growth such as education, health, business, manufacturing,…

Commenting on the real estate market, if the proposal is approved, Mr. Diep said: “There will be investors who continue to speculate on houses on the street and in the alley, but it will only be short-term and will bring many risks. . For example, the rent for a house in the central alley is about 10 – 15 million VND/month, but the rent for an apartment is only half of it. As for townhouses, owners can make a profit from leasing, but must analyze if new urban areas are built in 50 – 70 years, creating current facilities, people will focus on living in urban areas. more urban. Therefore, there is a tendency for business people to rent space in commercial centers in urban areas.”

Mr. Diep added that in the past, whenever bank interest rates were low, there was often a real estate price fever. Because, investors will use large financial leverage, money flows into real estate a lot, do not focus on business and production. But if the apartment becomes a consumer product, plus taxing real estate ownership, then every time the bank interest rate is low, we don’t need to worry about land fever, the cash flow will be diverted to the purpose of trading in real estate. production, helping economic development.

“In my opinion, this proposal will create many purposes, both to help people access housing, prevent price fever, develop economic and urban areas, etc. However, this is a macro policy. related to the whole society, so to do this, it is necessary to study carefully and consult experts and those affected”, Mr. Diep said.

https://cafef.vn/so-huu-chung-cu-co-nien-han-se-keo-giam-duoc-gia-nha-20220605011900385.chn


According to Thanh Phong

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