CLEARER APARTMENT LIFESPAN RULES COULD EXPAND ACCESS TO AFFORDABLE HOUSING

Distinguishing Building Lifespan from Apartment Ownership

Under the proposal included in the draft law, the useful life of an apartment building would be determined based on its design documents, the period it has been in use and the results of safety inspections.

When a building reaches the end of its designated lifespan but continues to meet safety requirements, its use could potentially be extended in accordance with regulations. If inspection results show that the building no longer meets technical standards, renovation or reconstruction would be required.

Some lawmakers have called for clearer terminology regarding the concept of "time-limited apartments" in the draft law. In their view, the period during which a building can safely remain in operation should not be interpreted as equivalent to the duration of an individual's ownership rights over an apartment.

National Assembly delegate Thach Phuoc Binh noted that an apartment represents a major asset for many households and is often purchased with savings accumulated over many years. Therefore, the need to renovate or demolish a building that no longer meets safety requirements should not mean that the lawful property rights of apartment owners are automatically terminated.

The legislation should clearly distinguish between the lifespan and safety of a building and property rights associated with an apartment.

Potential for a New Segment of More Affordable Apartments

From another perspective, National Assembly delegate Ta Van Ha suggested that clearly establishing a building's useful life could allow the market to develop an additional apartment segment at more accessible prices.

According to him, not every buyer necessarily needs to pursue ownership under an unlimited-use model. For certain groups, choosing an apartment with a clearly defined period of use could reduce the amount of money required upfront.

For example, instead of paying a substantial amount for an apartment under the traditional ownership model, some buyers could opt for a unit with a specified period of use at a lower price, depending on their financial capacity and actual housing needs.

Such a model could become an option for younger buyers, middle-income households and people who prioritize immediate housing needs over long-term asset accumulation.

Renovating Older Apartment Buildings Remains a Challenge

The reconstruction of aging apartment buildings continues to present a number of challenges, particularly in reaching consensus among apartment owners and mobilizing sufficient funding for renovation projects.

As buildings become older, the need for renovation or reconstruction may become increasingly urgent. However, residents have different financial circumstances, making it difficult in some cases to agree on a funding plan for rebuilding.

Under the proposals currently under consideration, owners of certain apartment buildings could continue to use the land associated with the existing development and contribute financially to renovation or reconstruction.

If an owner does not choose to contribute toward reconstruction, compensation for the value of the land use rights associated with the apartment building could potentially be considered. The compensation would be determined based on the corresponding share of land use rights at the time the building is demolished.

Protecting Both Property Rights and Access to Housing

One concern is that the land use rights allocated to individual apartments in many apartment buildings may have relatively limited value. This could create difficulties for residents who receive compensation but still need to find and finance alternative accommodation.

National Assembly delegate Nguyen Thi Viet Nga argued that policy should simultaneously protect property rights and people's access to housing.

Under this approach, in addition to compensation mechanisms, housing policy should provide support through options such as social housing, rental housing and rent-to-own housing. These mechanisms would be particularly important for households that cannot afford to contribute financially to reconstruction.

A suitable support framework could also reduce the risk of residents losing access to stable housing when older buildings need to be renovated or rebuilt.

Balancing Building Safety and Housing Affordability

Regulations concerning the useful life of apartment buildings involve more than the physical lifespan of a structure. They also affect property values, housing affordability and the broader process of urban renewal.

Therefore, as the amended Housing Law is finalized, clearly defining key terms, property owners' rights and procedures for dealing with buildings that reach the end of their useful life will be important.

An effective policy framework should pursue three objectives simultaneously: ensuring building safety, protecting residents' property rights and creating additional housing options that match people's financial capacity.

The National Assembly is expected to continue reviewing the amended Housing Law and consider its adoption at the October session.

CLEARER APARTMENT LIFESPAN RULES COULD EXPAND ACCESS TO AFFORDABLE HOUSING

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