Nearly US$50,000 for a car parking space in Hanoi

The Ministry of Construction is collecting people’s opinions on draft regulations on the use and management of apartments, which includes a noticeable article: the parking space can be traded. This draft regulations will be issued to guide the implementation of the new Housing Law that took effect on July 1, 2015.

The current law stipulates that the parking space belongs to the ownership of residents of apartment blocks. However, Decree 71 guiding the implementation of the law divides the parking space into two kinds of areas for motorcycles and automobiles, which led to disputes in apartment blocks for the parking space for cars.

Therefore, the draft regulations stipulate that for the parking space for cars, residents can rent or buy. If the parking space for car is not hired or purchased, it belongs to the management of the apartment investors.

The draft regulation points out that if residents buy the parking space for cars, they are responsible for managing the space. If they don’t use the space, they have the right to lease or sell it to other residents in the apartments. If residents do not buy the parking space, the apartment investors have the right to manage it.

However, if the apartment investors are allowed to sell the parking space and it is not well managed, they can speculate and raise the leasing prices, affecting the interests of residents.

In fact, the sale of auto parking space has occurred in some apartments in Hanoi and the price is very high, from several hundreds of million dong to nearly VND1 billion.

Mrs. Linh, a resident living in the Hei Tower apartment building in Hanoi, said in 2013 the building investor offered for sale parking sites for tens of thousands of US dollar. Linh paid more than VND300 million (US$15,000) for an area less than 10 m2 for her car.

"More than VND300 million is a large amount of money but we had to pay for the parking site; otherwise I don’t know where to park my car," Linh said.

Mr. Son, a resident of the apartment building at 93 Lo Duc, Hanoi also said that he had to pay VND500 million ($25,000) for a parking site.

But the highest price for a parking site in Hanoi may belong to the Goden Westlake apartment building on Hoang Hoa Tham Road, Hanoi. The parking sites here are priced from several hundred million to nearly VND1 billion (US$50,000).

A resident here said to own a parking space within 38 years, they had to pay nearly VND800 million (US$40,000).

Thus, a plot of land of less than 10 m2 is sold at a price of an apartment and exceeds the value of a medium-class car.

The price for parking space at some apartments is too high compared to the average. Currently, the rent for a parking site in some areas in Hanoi is from VND600,000 to VND2.5 million/car/month (US$30-US$110).

According to real estate experts, state agencies should be careful when allowing investors of apartment buildings to sell parking spaces to ensure the interest of apartment residents.