New draft law legalizes super-small flats

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Báo Tuổi Trẻ English - 70 month(s) ago 5 readings

New draft law legalizes super-small flats

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.

w A 25-square-meter flat model introduced by the FPT City Da Nang JSC Photo: VnEconomy

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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.

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