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Wednesday, July 24, 2024

Double compensation likely for aging apartments in Hanoi

By Thai Huy

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HCMC – The Hanoi City People’s Committee has introduced the draft regulations on renovation of aging apartments to the public for feedback, with compensation possibly double.

According to information from the portal of the Hanoi City’s People’s Committee, for the aging apartment buildings renovated and constructed by the Government, the compensation coefficient would be one. If the relocation apartment’s area is larger than that of the original one, the apartment owner will make up the difference which will be calculated in square meters at the same construction cost.

The Government will use the State budget to renovate only those aging apartment buildings that are State-owned and on the list of buildings in need of dismantling due to fire explosion risk, natural disaster or expiry.

Under the draft regulations, for the projects renovated by capital from the private sector, the compensation coefficient will not exceed twice the usable area of the original apartments. For example, if the area of the original apartment unit is 25 square meters, the maximum area compensation for the owner will be 50 square meters.

If the apartment owner refuses to buy the extra area, apart from the compensated area, the owner will not be subject to relocation and will receive a cash payment as compensation instead.

Since 2005, Hanoi has begun the renovation of aging apartment buildings. However, the city has completed renovating only 19 projects until now, while14 others are under construction. The city attributes the slow progress to policy changes.

From 2021-2025, the city planned to renovate 10 aging apartment buildings, including four with class D apartments and six with apartments feasible for renovation.

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