Mini apartment development should be strictly managed, not banned.

The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the National Assembly Standing Committee, the Law Committee and the Ministry of Construction regarding a number of proposed solutions to ensure construction quality and fire safety for mini apartment buildings.

After National Assembly Chairman Vuong Dinh Hue directed to "absolutely not legalize mini apartments in the Housing Law", HoREA proposed to only be decisive with transformed projects and not completely ban them.

Specifically, HoREA proposed that “mini apartment buildings should be managed, not banned”. In terms of viewpoint, the Association found that “mini apartment buildings” are not “defective products” of the previous “hot” real estate market development period as some experts have said, but mini apartment buildings with apartments for rent or for sale are very necessary housing products for society in the past 13 years, now and possibly in the coming decades.

“From the reality that the whole country has thousands of mini apartment buildings with tens of thousands of people living there and the demand for renting and buying mini apartment buildings in society is very large, forcing us to be very alert and clear-headed in choosing a solution to manage, not to ban mini apartment buildings, similar to other countries in the world that allow, but must strictly manage this type of mini apartment building to ensure fire safety and healthy development”, HoREA's document clearly stated.

According to HoREA’s explanation, this is a type of apartment with affordable rental and selling prices, suitable for many groups in society. Specifically, middle-income earners, low-income urban residents, students, singles, newly married people, and immigrants.

Now is a very favorable time to develop comprehensive, synchronous, and unified legal regulations to manage the type of "mini-apartment buildings". Because the 15th National Assembly at its 6th session in October-November 2023 is expected to consider and pass many laws, including the Draft Land Law, Housing Law, Real Estate Business Law and a number of related laws to ensure consistency and unity.

Accordingly, HoREA proposed to add regulations on investment in the construction of mini apartment buildings, which must establish a project; must comply with and comply with legal regulations on appraisal and acceptance of works, including fire protection works; add regulations on business of renting or selling these apartments, which must register for real estate business according to the provisions of law; add regulations on management and operation of mini apartment buildings similar to management and operation of apartment buildings.

The Ministry of Construction needs to add technical standards on mini apartment buildings to the National Technical Standards on Apartment Buildings to strictly manage and develop this type of building safely and healthily.

Real Estate - HoREA: Mini apartment development should be strictly managed, not banned — HoREA: Mini apartments should be managed, not banned.

In detail, HoREA proposed to amend and supplement Article 57 on Development of multi-storey housing for many households and individuals in the Draft Law on Housing (amended).

First, Clause 1, households and individuals with the right to use residential land as prescribed in Clause 3, Article 54 of this Law, who build houses with 2 or more floors, each floor is designed and built with 2 or more apartments, which are small-scale apartment buildings (also known as mini apartment buildings) for rent, must meet the prescribed requirements, especially the provisions of the law on fire prevention and fighting for apartment buildings.

Regarding Clause 2, the housing specified in Clause 1 cannot be sold or rented out for purchase, except in cases where the Government allows a pilot program for households and individuals owning this housing to sell or rent out apartments at the request of the Provincial People's Committee and the Ministry of Construction.

In Clause 5, People's Committees at all levels, within the scope of their duties and powers, households and individuals specified in Clause 1 of this Article must comply with traffic conditions for fire trucks at residential areas according to the provisions of the law on fire prevention and fighting as a basis for granting housing construction permits.

In addition, HoREA also proposed to supplement Clause 3, Article 2 of the Draft Law on Housing (amended) related to the concept of apartment buildings, specifically housing of households and individuals with the right to use residential land according to the provisions of this Law, building houses with two or more floors, each floor is designed and built with two or more apartments, which is considered a small-scale apartment building (also known as a mini apartment building) .

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