Dark hallways, no fire alarm system, dilapidated and peeling floors and walls inside and out… are the scenes at dozens of D-class apartments (heavily damaged and dangerous) in Ho Chi Minh City awaiting rescue. But for many reasons, the rescue work is still almost "inactive".
According to a report by the Ho Chi Minh City Department of Construction, the city has 474 old apartment buildings built before 1975, including 16 grade D apartment buildings (with 14 apartment buildings inspected in the period 2016 - 2017) that are increasingly deteriorating. However, the progress of rebuilding old apartment buildings is very slow due to many reasons, mainly due to the mechanism.
Looking back at the process of starting from 2016 until now, the demolition and construction of new apartments to replace old, seriously damaged and dangerous apartments has only stopped at relocating and temporarily housing residents. For example, apartment building No. 440 - Tran Hung Dao Street (Ward 11, District 5), although the level of danger was determined to be a level D house, its load-bearing capacity could not meet the requirements of normal use, but it took nearly 6 years after the Ho Chi Minh City People's Committee requested urgent relocation for the local government to convince residents to agree to move to a new place.
Many people have argued that renovating old apartments is even more difficult than developing social housing. The biggest bottleneck is compensation and site clearance. Furthermore, some decisions must have the consensus of the majority or all residents before they can be implemented.
The renovation of old apartments is often divided into two groups. One is to build apartments with minimum area to meet the resettlement arrangement on site. The other is to build large commercial apartments to attract customers.
A representative of a real estate company that once participated in rebuilding old apartments in Ho Chi Minh City said that according to previous regulations, after deducting all costs, including temporary housing support, resettlement and compensation costs... the profits would be very low, so businesses were not interested. It is also very difficult for businesses to implement the mechanism of exempting land use fees, land rent and land use conversion fees for the entire land area assigned within the project scope because the financial sector has not yet agreed. Moreover, there is currently no mechanism to handle the value of the construction area of auxiliary works such as corridors, stairs, roof floors...
Recently, the issue of renovating and rebuilding apartment buildings has been adjusted in more detail by the Housing Law 2023, at the same time legalizing many regulations related to the rate of people's consensus, to the incentive mechanism for investors implementing investment projects to renovate and rebuild apartment buildings...
In particular, investors are exempted from land use fees and land rent for land areas subject to land use fees and land rent within the scope of investment projects to renovate and rebuild old apartment buildings. In addition, one of the breakthroughs in the new regulations on renovating and rebuilding old apartment buildings is the 2023 Housing Law, which has solved the problem of apartment buildings after relocation, but not having enough area to build new projects; has allowed the implementation of apartment building reconstruction projects in the direction of consolidation (collecting old low-rise apartment buildings into one location, to renovate and build a new high-rise building, with enough accommodation for residents of many old apartment buildings).
The above experience was applied by the People's Committee of District 3, Ho Chi Minh City when developing a plan to collect 43 apartment buildings in the area to rebuild 3 large-scale apartment buildings, enough for resettlement in the district. This not only helps increase the area of trees and utility spaces for people, but also helps beautify the urban landscape - as commented by Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association: "The above solution overcomes the situation of abandonment in resettlement projects built in other locations, especially projects that do not meet the needs of travel, living, medical treatment, education, business, etc., leading to resettled people not moving in".
It is expected that the above mechanism and the experience that Ho Chi Minh City has gained will create a turning point, promoting the plan to renovate and rebuild apartment buildings that have degraded to a dangerous level in Hanoi, Hai Phong and many other localities.
Source: https://baodautu.vn/batdongsan/giai-cuu-chung-cu-cu-xuong-cap-can-chinh-sach-mo-duong-d222294.html
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