LATEST DRAFT HOUSING LAW REMOVES THE CONCEPT OF “TIME-LIMITED APARTMENTS”

Avoiding Confusion Between Building Lifespan and Ownership Rights

An earlier version submitted to the National Assembly for comments in August introduced the concept of “time-limited apartments,” referring to apartment buildings whose service life is determined under construction regulations.

However, the terminology raised concerns among several National Assembly deputies, who argued that without a sufficiently clear explanation, it could lead residents to believe that their apartment ownership would automatically expire when the building reaches the end of its service life.

The key distinction is between the service life of a building and the ownership rights attached to an apartment.

Resolution No. 21 of the Party Central Committee states that newly constructed apartment buildings may have a service life determined according to the lifespan of the structure, while the property rights of apartment owners must remain protected. Once a building reaches the end of its service life, owners may fulfill the relevant financial obligations to participate in its reconstruction in accordance with applicable regulations.

The current Housing Law also does not contain the concept of “time-limited apartments.”

Changes to the Framework for Apartment Renovation and Reconstruction

The latest draft also revises several provisions concerning the renovation and reconstruction of apartment buildings.

Under the proposed approach, a building’s service life would be determined based on its approved design documentation. This differs from the version released in August, which proposed determining service life based on both design documents and actual inspection results.

The Ministry of Construction said apartment owners would retain the right to continue using the relevant land area to reconstruct the building themselves. However, renovation and reconstruction would need to be carried out as part of an approved project.

The draft also proposes additional incentives for companies undertaking apartment renovation and reconstruction projects. These may include exemptions from certain obligations related to the development of social housing and rental housing, with the aim of encouraging greater private-sector participation in rebuilding aging apartment complexes.

Focus on Reducing Administrative Procedures

At a meeting with ministries and relevant agencies on September 9, Prime Minister Lê Minh Hưng emphasized that the amendments to the Land Law, Housing Law and Law on Real Estate Business are intended to remove regulatory bottlenecks and unlock land, housing and real estate resources for economic development.

The Prime Minister called for the amendments to genuinely reduce administrative procedures and business conditions, while avoiding situations in which requirements are simplified at the central level but additional requirements emerge during implementation at the local level.

Government agencies were also asked to conduct comprehensive impact assessments and carefully review transitional provisions.

When seeking public feedback, policymakers should clearly explain the objectives, scope and substance of proposed policies to minimize different interpretations or uncertainty over how the regulations would apply.

This approach is also intended to prevent legal gaps or conflicts during implementation and safeguard the legitimate rights and interests of both residents and businesses.

Draft Law Expected to Be Submitted to the National Assembly Later This Year

The amended Housing Law remains under review and is being further refined before being submitted to the National Assembly.

The draft is expected to be considered and potentially passed during the National Assembly’s year-end session.

The removal of the term “time-limited apartments” from the latest draft could help draw a clearer legal distinction between the service life of an apartment building and the property rights of individual apartment owners.