House Standing Committee says no to cap on apartment ownership period

National Assembly Deputy Chairman Nguyen Khac Dinh said at a meeting Friday that the Standing Committee does not agree with the proposal, but there should be regulations giving the government the right to demolish or repair deteriorating apartment buildings and relocate their occupants.

But the government could present its proposal to the National Assembly if it wished, he added.

Hoang Thanh Tung, chairman of the National Assembly Legislation Committee, said most lawmakers fear the proposal would have a negative impact on the property market which is already struggling.

The duration cap would lead to an imbalance since people would then prefer to buy land to ensure permanent ownership, leading to a mismatch in land-apartment prices.

"The current permanent ownership of apartments should be maintained, and the government should create regulations on how repairs and reconstruction should be carried out when a building exceeds its designed lifespan."

Nguyen Phu Cuong, chairman of the Finance and Budget Committee, said the proposal is "not reasonable" and could lead to a "negative reaction" from the public.

Minister of Construction Nguyen Thanh Nghi said the proposal seeks to ensure the safety of apartment residents, especially in the many decrepit ones in Hanoi and Ho Chi Minh City built decades ago.

Ownership will also cease with the demolition of a building, But Nghi said the proposal would be reviewed to ensure people’s rights are safeguarded.

The proposal is part of several amendments mooted to the Housing Law and set to be discussed by the National Assembly in May.