VietNamNet Bridge – Service fees at residential buildings in Ha Noi, ranging from VND700 (3 US cents) to VND16,500 (72 cents) per square metre, under the capital’s newly-issued decision are thought to be unrealistic.

The My Dinh residential quarter in Ha Noi. The service fee in residential buildings, newly issued by the capital People’s Committee is believed to not match to the reality. — VNS Photo Truong Vi

The decision, approved by vice chairman of the capital People’s Committee Nguyen Doan Toan late last week, said that the service fee was VND700-5,000 (3–22 cents) per square metre in a building without an elevator and VND1,200-16,500 (5-72 cents) per square metre in a building with elevators.

Service fees exclude fees for swimming pools, saunas, cable television and internet, the decision said.

Nguyen Thanh Hung, deputy head of the Viet Nam Building Management Association, told the Thanh Nien (Young People) newspaper that the range for the service fee was not “close” to the current fees in local residential buildings.

In reality, a service fee of VND8,000 (35 cents) per square metre was often applied in luxurious residential buildings in Ha Noi, he said.

For some residential buildings, fees of VND10,000 (44 cents) per square metre had included fees for swimming pool or gym centre, he said.

According to Hung, only a few residential buildings collected service fees above VND15,000 (66 cents) per square metre, while most buildings in the city collected service fees under VND10,000 per square metre.

However, service fees were up to VND20,000 (88 cents) per square metre in the Indochina Plaza Residential Building in Cau Giay District, but residents are willing to pay the fee because of the good service.

“The above examples show the service fees the city issued does not match with reality and is unnecessary,” he said.

Agreeing with Hung, a real estate expert said the city administration should use the list of residential buildings classified by the Ministry of Construction before issuing service fees.

This would make the service fees closer to the reality, he said.

In response to the complaints, a representative from the construction ministry said the issuing of service fees at residential buildings in Ha Noi and other localities came after several residential buildings in Ha Noi overcharged, prompting complaints from residents.

Therefore, the administration regulated the highest service fee to fix the problem, he said.

Based on the regulated service fee, managers of residential buildings and residents could decide a suitable fee for both sides, he said.

VNS