Sunday, April 29, 2012

New draft law legalizes super-small flats | Look At Vietnam

New draft law legalizes super-small flats

April 28, 2012
LookAtVietnam – Instead of covering at least 45 square meters as
required by current regulations, apartments with a smaller size will be allowed
in the near future, an official at the Construction Ministry has said.



A 25-square-meter flat model introduced by the FPT City Da Nang JSC.  (Photo: VnEconomy)
Nguyen Trong Ninh, deputy
head of the ministry’s Housing and Property Market Management Department, made
the statement at yesterday’s forum “Real Estate in 2012: Opportunities in the
Crisis” held by the Vietnam Chamber of Commerce and Industry.
Under current regulations, a flat is allowed to be constructed if it covers at
least 45 square meters, but under a new decree being drafted by the ministry, a
much smaller area, at 25 square meters, will be allowed, Ninh said.
The bigger an apartment, the more difficult it is to be sold, according to some
surveys, he explained.
The new decree, intended for management of urban investment and development
projects, will be submitted to the Government in the second quarter of this
year for approval, he said.
The number of such super-small apartments a developer will be allowed to build
will be in proportion to the total number of apartments under its projects,
Ninh added.
He also said in 2013-2014,
the ministry will draw up the Law on Cities, and amend the laws that govern
construction, dwelling houses, and real estate business.

The proposed new regulation on small flats is in line with the viewpoint of the
Ho Chi Minh City Real Estate Association, which last month suggested developing
residential areas with small apartments of 20 to 70 square meters for singles
and small families, as one of the solutions to unfreeze the property market,
increase sales and regain consumer confidence.
Binh Duong-based Becamex
IDC has recently kicked off a project to construct 3,000 apartments of 30
square meters each, worth VND90 million (US$4,330) per unit, which is
considered a breakthrough to realize the dream of low-income people to own a
home.

VietNamNet/Tuoi Tre
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