Distinguishing building lifespan from ownership rights

Under Resolution No. 21-NQ/TW, issued by the Communist Party of Vietnam's Central Committee on July 28, 2026, commercial apartment buildings would be managed according to the design lifespan of the structure while ensuring owners' property rights. When a building reaches the end of its usable life, apartment owners would fulfill financial obligations under the law to rebuild the property.

Vietnamese law currently does not impose a time limit on apartment ownership. Instead, it regulates the service life of apartment buildings, which is determined by engineering design, actual usage and, when necessary, official safety inspections.

The proposed approach is expected to influence both buyer sentiment and the broader condominium market.

Speaking to VietNamNet, real estate expert Le Quoc Kien said the immediate impact is likely to be psychological.

Some buyers and investors may delay purchasing decisions because they misunderstand the proposal, assuming apartments can only be owned until a building reaches the end of its design life, or even fearing they will automatically lose ownership.

"These concerns reflect uncertainty rather than any fundamental change to ownership rights," Kien said.

He stressed that the lifespan of a building should not be confused with ownership of an apartment. Linking an apartment's use to the building's lifespan does not automatically extinguish owners' property rights when the structure reaches the end of its design life.

Like all buildings, apartment complexes are designed with a finite service life. Resolution 21 aims to establish a clearer legal framework for dealing with aging or unsafe buildings, replacing the uncertainty that has complicated redevelopment projects for years.

According to Kien, the lack of clear regulations has long hindered the reconstruction of aging apartment blocks.

"If redevelopment depends entirely on unanimous agreement among all owners, projects can become nearly impossible. Even within a single family, reaching consensus can be difficult. In a building with hundreds or thousands of owners - and ownership transferred across generations - obtaining unanimous approval is extremely challenging without a clear legal framework," he said.

This problem is particularly evident in Ho Chi Minh City, where many apartment buildings constructed before 1975 have deteriorated significantly but remain standing because redevelopment has stalled over legal and ownership disputes.

Market likely to place greater value on land

Over the longer term, Kien believes the proposal could fundamentally change how apartments are priced.

Rather than focusing primarily on floor area, amenities and location, buyers may increasingly value the land-use rights attached to each apartment.

He said the most enduring value of a condominium lies not only in the physical structure but also in the owner's proportional share of the land beneath it, especially when a building must eventually be rebuilt or transferred to a new developer.

The proportion of land-use rights associated with each apartment could become a critical factor in determining compensation and redevelopment benefits.

As a result, buyers are expected to pay closer attention to:

The size of the development site
Building density
The number of apartments sharing the land

Each unit's proportional land-use rights

Projects built on larger land parcels with lower residential density may become more attractive because each apartment carries a larger share of the underlying land, potentially enhancing its long-term value.

Developers, in turn, may need to adjust their marketing strategies.

Beyond promoting design, amenities and construction quality, they are likely to provide more detailed information about land area, development density, shared land-use rights and redevelopment plans after a building reaches the end of its service life.

Kien said this transparency could become a new competitive advantage in Vietnam's housing market.

Clearer legal safeguards still needed

According to Kien, the most important issue for homeowners is ensuring that property rights are clearly protected.

Future legislation should specify how different scenarios will be handled, including rebuilding apartment complexes, transferring land-use rights to new developers, compensation, resettlement and financial support for owners unable to contribute to redevelopment costs.

He also said lawmakers should clarify how authorities determine that a building has reached the end of its usable life.

The design lifespan alone should not automatically trigger demolition if safety inspections confirm that the structure remains fit for use.

"For homebuyers, the key is not to react emotionally," Kien said. "They should evaluate not only location, price and amenities, but also land size, development density, proportional land-use rights and the property's redevelopment potential. Those factors will increasingly determine an apartment's true long-term value."

Anh Phuong