Hanoi stipulates compensation for the renovation of apartment buildings

A draft decree by the Hanoi People's Committee shows that owners of renovated apartments will receive compensation for double the property size of their current home if the block is rebuilt with non-state funds.

Dwellers of a dilapidated apartment will receive compensation

According to the draft decree that aims to manage the reconstruction of outdated apartment blocks in the capital, Hanoi stipulates compensation for the renovated apartment buildings as a property twice the size of their original home. If the apartment owner refuses to pay for the new house, they can receive cash compensation and find resettlement elsewhere. If the new dwelling is smaller than the old one, the developer must pay the owner the difference in size. 

In case the rebuilding of the apartment building is sponsored by State funds, the owner will receive a new dwelling of a similar size. They must pay for the extra area if the new home is larger. 

The Government only finances the reconstruction of an outdated apartment building if the building is owned by the State or is subject to compulsory demolishing due to fire, disaster, near expiration, or in case capable developers cannot be found.

Stipulating compensation for the renovated apartment buildings

The draft decree also regulates that the minimum area of a new apartment should be 25m2 and that the number of 25-45m2 flats in a block should represent 25% of the total. The Hanoi People's Committee is seeking feedback from the public on the draft decree starting December 15. 

Hanoi nowadays has about 1,580 ancient buildings and apartment blocks, including more than 300 built between 1960 and 1994 and before 1954.

The city started reconstruction of the old apartment buildings in 2005, but the project has been stalled due to unresolved conflicts of interest between the State, developers, and homeowners.

According to Hanoi's plan for the 2021 - 2025 period, the city will renovate and reconstruct ten outdated apartment blocks, including six condos in the wards of Kim Lien, Trung Tu, Khuong Thuong, Thanh Xuan Bac, Thanh Xuan Nam, and Nghia Tan), and other four difficult ones in Giang Vo, Thanh Cong, Ngoc Khanh wards and the Ministry of Justice headquarters.

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