Capital’s slim houses to be squeezed out

Falling between the cracks: an endangered breed

Houses with street frontage of less than 20 square metres are to be repossessed and demolished by local authorities, after a regulation issued by the Hanoi People’s Committee last week.
The regulation stated these houses are no longer acceptable under the capital’s housing strategy. Local authorities or new buyers would be responsible for compensating home owners, with the cleared land being converted into public space, including pavement or for trees.
The People’s Committee said their goal was to remove those houses that are too small or thin to make the city’s streets more attractive, with the owners of these tiny properties encouraged to sell to neighbours or have their land repossessed.
It is anticipated that these small tracts of land along streets will be extremely sought after by investors, especially due to Vietnam’s “pavement economy” of home-run goods stalls with many Vietnamese people believing “one metre of street frontage is one metre of gold”.
Under the regulation, compensation for the reclaimed land would be paid to owners or occupiers - owners are to receive land-based recompense and occupiers receive cash in a lump sum - pegged to market prices.
Investors will not be required to pay any other sums for supporting land owners to move from the project site. Usually investors must pay for original land owners’ removal costs, temporary accommodation and often other under-the-table sums.
Officials from Hanoi People’s Committee said these rules aim to reduce complicated requests by land owners to buyers and speed up the clearances.
Land compensation and clearance are necessary aspects of most property projects, and in some cases do not end up going smoothly. Slated developments such as the Sai Dong Industrial Zone and the Dai Kim horse track have been stalled indefinitely due to unresolved issues with existing land owners.