Settling Thirst of Owning Apartment for Fixed-term

The diversification of owning manners of apartment is also to suit the development trend of the region and the world. Nguyen Manh Ha, Head of the Ministry’s Department of Housing and Land Management said many countries in the world currently offer different manners of owning house for people to get choice. In Vietnam, owning apartment for fixed-term has been applied in some foreign-invested projects such as Ciputra, Pacific and Place. 

 

Ha added the regulation will give more conditions for upgrading old apartments. The manner should be appreciated because the diversification of owning manners will help people to choose the one which is suitable to their finance and circumstance. Agreeing with Ha’s opinion, senior advisor of the Ministry of Natural Resources and Environment Dang Hung Vo said in fact some regional countries like China, Australia and Singapore have applied the manner already. 

 

At present, many old apartment blocks in Hanoi and Ho Chi Minh City have degraded seriously. For some ones in Hanoi such as Nguyen Cong Tru, Thanh Cong, Kim Lien and Thanh Xuan, although having the policy to upgrade, the progress is very slow. How to get the best way is still challenge to managers.   

 

Vo said Vietnam should have offer a regulation on the longevity of apartments. Accordingly, apartments should be available for use from 50 years to 70 years belonging to the quality of each work.

 

However, it is not easy to realize this because of Vietnamese’s culture and thought of stable and long settlement in one place. As a result, the demand for new apartments has still increased.

 

Nguyen Manh Hung, director of a realty transaction floor located in Trung Hoa-Nhan Chinh said as getting information of the regulation, many people particularly those with medium-income or who come from other localities felt worried. Of them, many people have decided to stop buying apartment to listen to the news.

 

Mrs Ha in Thanh Xuan district is among those who have intended to buy an apartment. “We ourselves made great efforts and even called for support from both families to have enough money for an apartment. Thus, we should calculate carefully. If the regulation of owning apartment for time-limit is applied, we are afraid that our children would be difficult to get settlement in future”. 

However, Pham Thanh Hung, General Director of Century Price Assessment Company, said owning apartment for fixed-term will bring many unsound problems. For example, who will invest to rebuild the apartment if it is degraded? Hung said it is necessary to give time duration for owning apartment. 

Nguyen Manh Ha, Head of the Ministry’s Department of Housing and Land Management affirmed that the Law on Land regulates that people can get a long-term ownership, but they must pay a large sum for the only one time. Currently, the land money is accounting for majority of housing price. If separating them, the housing price will be down, resulting investments into housing fallen down. At that time, the price of apartment may reduce.

 

Many experts believe that owning apartment for fixed-term will be the effective way to help drop the realty price down. The price of mostly apartment blocks, particularly those in Hanoi, is now being push up because the number of buyers for speculation is much more than people who buy apartment to live. Meanwhile, apartment price standing at high make many people unable to get one. 

 

Over the past time, many people are unable to buy an apartment at original price due to the speculation. The situation also makes housing and land prices in general and apartment price climb very quickly, Hung agreed.  

 

Director of Navigat Consultancy Company Dang Van Quang however said it is not sure that the diversification of owning manners of apartment is a good way to make apartment price down. In fact, some apartment blocks such as Vincom and Pacific are applying the fixed-term ownership, but apartment price there remain over-sky.

 

Quang said the apartment price will be set of land price and attached assets. Thus, to reduce the apartment price, the state need intervene by macro policies to decrease the land price before applying the regulation. The Ministry of Construction should offer solutions to reduce costs of construction materials. If the realty supply is plentiful, the apartment price can be able to fall down, Quang said.