Apartments now account for a significant share of new housing supply in HCMC and Ha Noi, reflecting Viet Nam's shift towards higher-density urban living. As residential towers age and redevelopment become increasingly important, questions around apartment ownership, building lifespans and property rights have moved to the forefront of the housing market. 

Recent legislative changes have introduced greater clarity on these issues. This guide examines the latest regulations on apartment ownership and usage duration in Viet Nam, helping buyers and investors understand their rights, obligations and long-term considerations. 

For institutional and retail investors, navigating these regulatory nuances is essential for mitigating legal disputes and optimising capital efficiency. Savills provides an actionable overview of the latest legal amendments, ownership rights upon building expiration, and practical considerations for apartment investments in Viet Nam.  

Table of Contents 1. Regulatory Framework on Apartment Ownership and Usage Duration 1.1 Apartment Ownership Duration 1.2 Building Usage Duration 2. Property Owners' Rights Upon Building Demolition 3. Practical Scenarios for Building Demolition and Redevelopment 4. Key Due Diligence Advice for Apartment Buyers 4.1 Verification of Land Use Certificates and Permits 4.2 Developer Capability and Contractual Commitments 4.3 Construction and Maintenance 5. Conclusion

1. Regulatory Framework on Apartment Ownership and Usage Duration  

One of the most important concepts in Viet Nam's housing regulations is the distinction between owning an apartment and the service life of the building itself. Articles 58 and 60 of the Law on Housing No. 27/2023/QH15 set out this distinction.

1.1 Apartment Ownership Duration 

The classification between perpetual (long-term) and limited ownership depends on the underlying land use purpose and project duration, rather than land allocation:  

Land Law 2024 (Articles 13 and 171): 

Land use rights are categorised into stable long-term use and limited-term use;  

Commercial/Service Land (preferred by condotels and officetels): Land use term is evaluated and granted based on the investment project or lease application, capped at a maximum of 50 years (up to 70 years for special projects).  

Residential Land (commercial housing): Recognised as stable long-term land use.  

Law on Housing 2023 (Article 11): 

Apartment ownership duration is tied to the land use term. Developments built on residential land grant perpetual ownership, while those on commercial or service land are subject to a fixed ownership period aligned with the land use term. 

1.2 Building Usage Duration 

Unlike ownership, the duration of usage is a technical parameter. Under Article 58 of the Law on Housing 2023, it is determined by design records and actual quality assessments conducted by competent state management authorities. The National Technical Regulation on Civil Buildings issued by the Ministry of Construction categorizes building lifespan into specific grades. 

Classification of Building Lifespan by Construction Grade (Under Circular 06/2021/TT-BXD) 

Technical Inspection When a Building Reaches the End of Its Design Life Inspection Process Upon Expiration 

Under Article 61 of the Law on Housing 2023, when an apartment building reaches the end of its design life, provincial housing authorities arrange a structural safety assessment to evaluate its condition. Based on the results, Article 62 provides two possible outcomes: 

• Structurally Sound Condition: If the assessment confirms the building is structurally sound, authorities may approve continued use for a specified period. The extension is determined by the inspection findings, allowing residents to continue occupying the buildings.  
• Degraded Condition: If the assessment identifies serious structural deterioration or safety risks, authorities may declare the building unsafe for use. In such cases, residents must be relocated, and the building may be demolished for redevelopment.   

2. Property Owners' Rights Upon Building Demolition   

When an apartment building is demolished due to expiration or urban renewal, Vietnamese law safeguards owners' legal asset rights through clear compensation and resettlement mechanisms.  

• Land Use Rights Value: Under the Law on Housing 2023, land use rights in apartment projects are held jointly by all unit owners. When the building above is demolished, the underlying land use rights remain with the collective group of legal apartment owners. Land is not reclaimed except under statutory eminent domain for national defence, security, or national interest development projects.  
• Resettlement Rights: Apartment owners whose units are demolished are entitled to resettlement via:  
• On-Site: Priority placement in the newly reconstructed building at the original location.  
• Off-Site: If urban planning prohibits rebuilding apartments at the site, owners receive housing allocations at alternative local project sites or social housing equivalent in value and area.  
• Transitional Support Allowances: During the period between evacuation, demolition, and new apartment handover, owners receive social support in the form of:  
• Temporary housing provisions arranged by the Developer or Government;  
• Cash allowances provided by developers if owners opt out of temporary housing, calculated according to average market rental rates in the local area.  

3. Practical Scenarios for Building Demolition and Redevelopment

Under the Law on Housing 2023, apartment owners may face different redevelopment pathways depending on the condition of the building and the level of owner agreement. There are three primary administrative approaches to plan a building's future:   

• Option 1 - Owner-Led Redevelopment: Owners may convene an Apartment Building Conference to select a qualified developer and approve a redevelopment plan. Once the required level of owner consent is obtained (70%), the parties can negotiate reconstruction arrangements, funding responsibilities and the allocation of replacement units.  
• Option 2 - State-Supported Redevelopment: If owners are unable to reach an agreement within the statutory timeframe after a demolition decision is issued, provincial authorities may intervene. The State can appoint a developer through a bidding process or fund emergency demolition where necessary. Compensation and relocation arrangements are implemented in accordance with applicable regulations.  
• Option 3 - Land Acquisition for Public Purposes: Where the site is designated for public infrastructure or other approved planning purposes, the State may acquire the land under the Land Law. In these cases, redevelopment at the original location is not permitted. Compensation, site clearance and resettlement are managed by the relevant authorities based on prevailing land valuation and compensation regulations (monre.gov.vn).  

4.Key Due Diligence Advice for Apartment Buyers

Purchasing limited-term apartments can be an effective investment choice when backed by thorough due diligence. Prospective buyers should review the following checkpoints before signing a sale and purchase agreement (SPA):  

4.1. Verification of Land Use Certificates and Permits 

Check land use purpose: Confirm whether the parcel is designated as Residential (perpetual) or Commercial (40–50-year term).  

Calculate remaining project duration: The buyer's actual ownership period is bound by the developer's remaining land lease term. For off-plan projects, request official state approval documents confirming the project timeline.  

4.2 Developer Capability and Contractual Commitments 

Evaluate the developer's track record for delivering projects on time and maintaining construction quality.  

Examine maintenance terms in the SPA, verifying the statutory 2% maintenance fund allocation and handover schedule to the future Building Management Board.  

4.3 Construction and Maintenance 

Request official acceptance test reports for completed buildings.  

Confirm long-term maintenance plans for mechanical, electrical, elevator, and structural systems to sustain asset value throughout its operational lifespan.  

Clear regulations governing apartment ownership and building lifespans are strengthening transparency in Viet Nam's real estate market. By understanding ownership rights, inspection procedures and redevelopment mechanisms, buyers can make more informed decisions. As urban land becomes increasingly scarce, developments with clear legal status, professional management and strong construction standards are likely to retain their long-term appeal. 

5. CONCLUSION

Clarifying the legal framework regarding ownership and usage terms for apartments is an essential step toward aligning Vietnam’s real estate market with international standards. A clear understanding of the technical lifespan of buildings and the mechanisms for safeguarding rights helps homebuyers overcome apprehensions about apartments with limited ownership terms. Amidst shrinking land reserves in city centers, projects featuring transparent legal structures, professional management, and sustainable development standards will continue to serve as secure destinations for long-term investment capital.

FAQs

1. What actions must owners take to continue residing in an apartment after the 50-year land lease expires? 

Owners must apply to extend the land lease with the relevant authority, typically the Department of Natural Resources and Environment, at least six months before the lease expires. Approval is subject to state review and the payment of any applicable land-use or lease-related financial obligations. 

2. Are foreign buyers subject to ownership duration limits for apartments in Vietnam? 

Yes. Under current regulations, foreign individuals may own an apartment in Vietnam for up to 50 years from the date the ownership certificate is issued. Subject to the applicable legal requirements, this ownership term may be extended once for up to an additional 50 years. Foreign owners may also transfer the property to eligible Vietnamese individuals or organisations in accordance with current laws. 

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