VCCI against proposal to restrict apartment ownership term

In proposing amendments to the Housing Law, the Ministry of Construction said it wants to limit ownership to 50-70 years in line with apartments’ lifespans.

However, VCCI says apartment ownership duration should be kept unchanged and has pointed out four problems that can occur if the proposal is adopted.

The first is its impact on the housing market. VCCI believes that the ownership restriction will affect customers, who won’t want to buy such apartments, making it difficult for enterprises to sell them.

It would also encourage people to buy townhouses and villas instead of apartments.

If this change is only applied to new apartments, it would prompt people towards buying old apartments and push their prices up much higher.

Secondly, limiting apartment ownership is an interference with the ownership rights of people. According to the law, property ownership rights are protected and guaranteed by the state in the constitution and by the civil code.

Although the restriction of apartment ownership aims to ensure the safety of people, its direction is not appropriate since the state has other tools to ensure this goal.

Thirdly, VCCI recognizes that the state still has other ways to repair and renovate old and degraded old apartments without having to restrict apartment ownership. The state may request the renovation and demolition of an old apartment building when it’s degraded, deteriorating and becomes dangerous to the people living there.

Last but not least, limiting apartment ownership will increase administrative procedures for apartment owners. When the apartment ownership expires but is still eligible for continued use, the owner will have to ask the authority to issue them a certification of ownership extension, which will generate a lot of administrative procedures and create considerable inconvenience for people.