For a long time, the renovation of old apartment buildings in Ho Chi Minh City was deadlocked due to many reasons. At this point, these knots will be untied.
Fascinating but too difficult to do
In 2016, the Ho Chi Minh City Party Committee issued an action program on urban embellishment and renovation of old apartments. The goal is that by 2020, the city will renovate, repair or build 237 new apartments out of 474 apartments that were degraded and damaged before 1975. After 4 years of implementation, by 2020, Ho Chi Minh City has only completed the renovation of 2/237 old apartments and it can be said that it is almost deadlocked.
The question arises, why are old apartments in Ho Chi Minh City also located in prime locations, even in “diamond” land, but still do not attract investors. family? Revolving around this issue, Chairman of the Ho Chi Minh City Real Estate Association Le Hoang Chau said that the biggest difficulty in renovating and rebuilding old apartments that are not grade D comes from the regulation that 100% of owners must be owned. Owner agrees to dismantle. There is no mechanism and policy for resettlement for apartment owners and house-coupled households. In addition, the selling price of the difference between the area of the resettlement apartment and the area of the old apartment and the selling price of the resettlement apartment for the house-couple is also difficult to solve.
Old apartment building at 9 Cao Ba Nha, District 1, Ho Chi Minh City. Sharing the same view, an official from a central district in Ho Chi Minh City shared with an Economic & Urban reporter that, in fact, there are a number of real estate businesses that are very interested and want to participate in investment in the form of: socialize. Enterprises have traveled many times, studied very carefully, but eventually withdrew because of the biggest problem related to the population quota. In the central districts of Ho Chi Minh City today, it is very difficult to adjust the population target for a certain area. In order to attract investors, it is necessary to increase the population target by 2.5-3 times the existing one. That means the number of apartments increases by 2.5 – 3 times before they can do it. 1/3 of the apartments to be re-arranged for households in the old apartment, 1/3 sold to return the investment capital and the rest is the profit of the enterprise.
Open the knot
In fact, the above problems were proposed by the People’s Committee of Ho Chi Minh City to the Prime Minister during the working session on May 13, 2021. Accordingly, the People’s Committee of Ho Chi Minh City proposes to allow investors participating in the construction of new apartments to replace old and degraded apartments and be exempted from land use levy, land rent, and land use purpose change (if applicable). yes) for the entire area of land acquired and allocated within the scope of project implementation. At the same time, it allows the City People’s Committee to select investors to build new apartments to replace old apartments (grades B, C, D) in the form of urban embellishment. This recommendation has been approved by the Prime Minister.
It is known that the Housing and Urban Development Program in Ho Chi Minh City for the period of 2021 – 2030 implemented by the Department of Construction also sets out solutions to renovate old apartments. Accordingly, this city will consider and increase the architectural planning criteria for dangerous and badly damaged old apartments. The existing central area (including District 1 and District 3) gives priority to increasing planning criteria such as population, land use coefficient, construction density, etc. for general replacement and renovation projects. old residence before 1975. The area of 11 existing inner city districts (including districts 4, 5, 6, 8, 10, 11, Tan Binh, Tan Phu, Phu Nhuan, Go Vap and Binh Thanh) focuses on urban embellishment and upgrading according to modern direction. Focusing on completing unfinished projects, giving priority to increasing planning criteria such as population, land use coefficient, construction density… for renovation and new construction projects to replace old apartment buildings. before 1975.
With the knots removed, people in Ho Chi Minh City expect that the renovation of old apartments will be accelerated in the near future. “Our practical experience, it is extremely difficult to get 100% of the people living in the old apartment building to agree, especially those who have the right to own the ground floor area that can be used as a commercial space… I I think, if you want to successfully implement the renovation of old apartments in the form of old dams and build new ones, only 70-80% of households will agree. Officer (unnamed) of a district in the central area of Ho Chi Minh City
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