Hanoi proposes removal of apartment service price cap

The Hanoi People's Committee has asked the Ministry of Construction to issue a price list for apartment service fees to replace the existing regulation on the service price cap. Hanoi proposes removal of apartment service price cap According to the committee, the price list will be a base for apartment investors, managers and people to discuss and decide the application of their own apartment service prices. In September 2011, the municipal People's Committee approved the regulation for apartment service fees. The lowest of VND2,400 (USD0.11) per square metre per month is applied for apartments without elevators, and those with elevators can have the fees ranging from VND3,100 to VND4,000 per square metre. However, due to the diversification of the apartment segment and characteristics of each development, the ceiling price regulation is unrealistic. Besides, taking advantage of the regulation, many apartment managers try to misinterpret it on purpose to impose the highest fees for households. This has been the main cause of disputes in apartment use in the city recently. Last year, hundreds of residents at Hanoi Keangnam Landmark Tower, Vietnam's highest building, demonstrated against new service fees imposed by the management board, which they refused to pay, and were subsequently banned from using the lifts. The development's management board has enforced a service fee of VND18,843 per square metre per month, but the residents claim they were only required to pay VND4,000 per square metre, according to regulations set by the city's People's Committee. Service fee-related disputes have also occurred at other buildings in Hanoi such as The Manor, Golden Westlake, and Sky City. Tourist Vietnam
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