MINISTRY OF CONSTRUCTION URGES LOCAL AUTHORITIES TO REVIEW CONSTRUCTION MATERIAL PRICES AND UPDATE CONSTRUCTION PRICE INDICES TO REFLECT MARKET CONDITIONS

Options After an Apartment Building Is Demolished

The draft law proposes several measures to protect the rights and interests of apartment owners.

If the land continues to be designated for redevelopment as a condominium project, apartment owners may jointly invest in constructing a new building through a cost-sharing mechanism or choose other options as provided by law.

If owners decide not to participate in the redevelopment, their rights and interests would be addressed through compensation mechanisms or other solutions determined by the competent authorities in accordance with applicable regulations.

Additional Cases Requiring Apartment Building Demolition

In addition to buildings that have reached the end of their service life and are no longer suitable for use, the draft also proposes demolition in several other circumstances, including:

• Buildings that have seriously deteriorated.
• Apartment buildings posing safety risks.
• Buildings severely damaged by natural disasters or accidents.
• Buildings that no longer satisfy operational safety requirements based on official inspection results.

The decision to demolish a building would be based on the structural quality assessment conducted by the competent authorities.

Proposed Resettlement Policy

To safeguard residents' rights, the draft also outlines resettlement arrangements for projects involving the renovation or reconstruction of apartment buildings.

Depending on local planning and specific circumstances, residents may be offered on-site resettlement or receive compensation and other forms of support in accordance with current regulations if the land is no longer designated for apartment redevelopment.

What Does Current Law Provide?

Under the current 2023 Housing Law, there is no statutory time limit on apartment ownership. Instead, the law regulates the service life of the building itself.

When a building deteriorates or reaches the end of its designed lifespan, the competent authorities conduct safety inspections to determine whether the building may continue to be used or should undergo renovation, reconstruction, or demolition.

This means that the proposal contained in the draft amended Housing Law is still under consideration and has not become an official legal requirement.

Important Notes for Homebuyers

Homebuyers should distinguish between a draft law and legally effective legislation. The provisions outlined in the draft are currently undergoing public consultation and legislative review and may be revised before being submitted to the National Assembly for consideration and approval.

Therefore, at present, ownership rights to condominium apartments remain governed by the existing provisions of the 2023 Housing Law.