On August 19, National Assembly deputies discussed the draft Housing Law (Amended) in group sessions, focusing heavily on apartment ownership terms, rental housing development, and social housing mechanisms.

Hung highlighted the viewpoint that the State creates favorable conditions for citizens to exercise their right to housing.

"We are working to shift the mindset from mandatory homeownership to securing long-term living spaces," the Prime Minister stated. To address this, one of the most critical solutions is developing rental and social housing.

The draft law prioritizes rental housing alongside commercial housing for sale. It clearly delineates four housing categories: commercial housing, rental housing, official residence housing, and policy-backed housing.

The Prime Minister noted that rental housing development will focus on both state-funded and privately-funded investments. Additionally, accommodation will be developed for industrial park workers and external specialists.

For state-funded rental housing, the Prime Minister said the State could provide land, invest in housing and then lease it out.

He said rental housing should be developed through various models, including State investment and operation, or contracts with private operators to manage rental housing for 10, 15 or 20 years, or longer, with clear commitments to give residents peace of mind.

Addressing apartment lifespans linked to structural durability, Hung said: "We must clarify that no building lasts forever. All construction works must be examined whey they reach their expiration date; if they fail to meet technical requirements, they must be renovated or rebuilt."

“But the property rights associated with it must be protected by law,” the Prime Minister said.

He noted that if an inspection finds an apartment building to be safe, its service life can be extended. If it is no longer safe for residents, however, it must be rebuilt or renovated. The law must clearly stipulate these rules to reassure residents that “when a building reaches the end of its service life and has to be demolished, they will not lose their property rights.”

Social housing

National Assembly Deputy Nguyen Khanh Vu from Quang Tri said that the tentative regulation that apartment owners must contribute funds toward reconstruction shows progress compared to the 2023 Housing Law, but pointed out that the calculation framework remains insufficient for buyers to anticipate their future financial obligations.

The draft does not set a cap or a principle for owners' contributions. Construction costs at the time of demolition cannot be determined when people purchase apartments, as reconstruction may take place many years later.

Notably, if owners cannot contribute to reconstruction costs, they would receive compensation for the value of their land-use rights based on their share of land-use rights and would have to return the land to the State. According to the deputy, this would mean residents would have to give up their homes where they currently live.

The draft allows provincial People's Committees to decide whether to provide financial assistance to people who are relocated, but this is dependent on the circumstances of each locality and is not yet a mandatory safeguard under the law.

Another issue raised by NADeputy Nguyen Khanh Vu concerns the mechanism for determining the selling and rent-to-own prices of social housing.

Under the draft, developers would be allowed to calculate the selling or rent-to-own prices themselves or hire consulting firms to review the calculations, after which they could approve the prices without having them appraised by State agencies.

Vu agreed with the policy of reducing administrative procedures, but said the draft only legalizes the easing of “pre-inspection” requirements without fully retaining the post-inspection mechanism needed to protect homebuyers.

Under the mechanism currently being piloted, after a project is completed and put into operation, the developer must audit and finalize construction costs before submitting them to a specialized agency under the provincial People's Committee for review.

If the audited price is higher than the price stated in the contract, the developer cannot charge buyers any additional amount. Conversely, if the actual cost is lower, the developer must refund the difference to the buyer or rent-to-own customer.

National Assembly deputy Chau Van Minh of Phu Tho proposed expanding renovation and upgrading mechanisms beyond old apartment buildings to include deteriorating housing areas and spontaneously developed residential areas.

Thanh Hue - Tran Thuong