Vietnam Proposes Ending Apartment Ownership at Building Expiration

Vietnam's Ministry of Construction has proposed a significant change to property law, suggesting that ownership rights for apartments should cease when the building reaches the end of its designated lifespan or is deemed unsafe for habitation.

This proposal, part of the draft amended Law on Housing, aims to redefine the concept of apartment ownership, moving away from the notion of permanent possession. The ministry argues that apartments, like other structures, have a limited lifespan and are subject to degradation, natural disasters, or obsolescence. The current housing law does not specify an ownership duration, instead relying on the building's usage period determined by design and inspection.

Under the proposed regulations, if an apartment building is condemned or reaches its expiration, owners' rights to their units would terminate. However, they would retain rights to the land the building occupies. Owners could choose to contribute financially to the reconstruction of a new apartment building, with their contribution calculated based on their original apartment's floor area. Alternatively, if owners opt out of contributing to reconstruction, they would hand over their land use rights to the state, which would then assign the project to a developer.

The Ministry of Construction believes this new framework will shift public perception, encouraging people to view apartments as assets with a defined lifespan rather than perpetual property. This aligns with national technical standards that categorize building lifespans, requiring quality inspections for potential extensions after the initial term.