The Housing Law (amended) recently passed by the National Assembly has many new points, notably that investing in houses with many apartments for sale or rent (commonly known as mini apartments) requires a project.
Commenting on this, Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property), said that tightening the construction and management of mini apartments is necessary because this type of apartment has been developing rampantly for a long time with many violations.
The mini apartment market will be tightened in the coming time. (Photo: Cong Hieu).
Mini apartments in the near future will almost be impossible to sell to people without an investment project. The development of mini apartments will therefore be significantly limited due to strict procedural regulations.
Meanwhile, setting up an investment project and meeting the conditions to be an investor in a housing construction investment project will be a huge challenge. Because mini apartments are high-rise buildings, built on an area of 200 - 300 m2 mainly, located in deep alleys. Therefore, having to set up a project like a normal commercial apartment building is almost impossible.
“ With small alleys less than 2 meters wide, it is impossible to establish a 1/500 planning because many factors are not guaranteed such as: fire prevention, infrastructure, population indicators and environmental impact assessment. Meeting these requirements with current mini apartments is almost impossible ,” Mr. Toan analyzed.
According to Mr. Toan, with commercial apartments, project licensing and planning can take several years, while with mini apartments this period will be even longer.
Many mini apartments are located in deep alleys and do not meet fire prevention and fighting standards. (Photo: Cong Hieu).
Besides, mini apartments are mainly built in central areas, so the regulations on building height are very strict, usually a 200 m2 plot of land can only be built about 5 - 6 floors. With this density and height, investors cannot make a profit, so no one will do it.
In fact, currently, up to 95% of existing mini apartments are built without permits, because if they were built according to regulations, investors would already see losses before they even start.
" If you buy a 200 m2 plot of land for 10 billion, but can only build 5 floors and build 70% of the area, that is 700 m2, the cost of both land and construction is about 22 million VND/m2. If you sell it for 25 million VND/m2, it is clear that the investor will not make a profit by building 5 floors ," Mr. Toan explained.
Therefore, according to Mr. Toan, in the coming time, the mini apartment type is at risk of falling into decline because having to establish a new investment project to be built will make it impossible for many people.
For mini apartments that meet the conditions for construction, the cost will also be very high, not competitive with commercial apartments because the investment cost is too expensive.
Sharing the same view, Mr. Vu Cuong Quyet, General Director of Dat Xanh Mien Bac Real Estate and Services Joint Stock Company, also supports the Housing Law's view that it is necessary to tighten management of mini apartments to protect the rights, obligations and safety of owners.
Mr. Quyet said that normal project preparation takes about two or three years, and the cost for this stage accounts for about 5-10% depending on the scale and location of the project.
While the project is very complicated, not everyone can do it themselves. Mini apartments are mainly located in deep alleys, so it is difficult to ensure fire prevention and fighting.
“ In the future, when building mini apartments, owners will be forced to establish businesses. At that time, it will be impossible to avoid taxes as it is now, homeowners will have land and then apply for construction permits themselves ,” said Mr. Quyet.
More transparent and clear regulations will help mini apartments develop in the right direction, but also make it impossible for many people to make a profit from this type of apartment.
According to Mr. Quyet, in the coming time, the selling price of mini apartments will be higher, but people will be protected by law and have a safer living environment.
“ The market for building, selling and renting mini apartments will be very complicated in the near future, so the game will only be for professional developers, who can form professional companies specializing in developing this model. Individual households or amateur investors will find it difficult to participate in this type of project ,” Mr. Quyet emphasized.
Sharing about this issue, Mr. Nguyen Manh Khoi, Deputy Director of the Department of Housing and Real Estate Market Management, Ministry of Construction emphasized that it is necessary to regulate the construction of 20 apartments or more to establish an investment project, like a normal project to demonstrate responsibility, regardless of scale or number of apartments. When selling, it must comply with the Law on Real Estate Business.
In addition, in the documents, the construction permit must clearly show how many apartments can be built, how many floors, how many apartments per floor, and how many square meters each apartment is.
In addition, it must also meet fire prevention and fighting criteria; construction must have common and private ownership; construction permits are required in all situations; permits are issued for each apartment, etc.
According to the new regulations, individuals who want to build mini apartments (houses with 2 floors or more, each floor has apartments, or 2 floors and a scale of 20 apartments or more) for sale or rent will have to meet the conditions to be an investor in a housing construction project.
Apartments that are eligible for a certificate under the land law (pink book) will be sold, leased, or lease-purchased in accordance with the Housing Law and the Real Estate Business Law.
In addition, investing in mini apartments for rent must meet construction requirements issued by the Minister of Construction. The building must meet fire prevention and fighting requirements as prescribed by law.
Chau Anh
Source
Comment (0)