Hanoi to apply ceiling service fees for flats

Hanoi City’s authority has decided on VND4,000 per square meter per month as the maximum level of fee imposed on every kind of apartment, aiming to ease conflict between residents and investors in terms of expensive management fees.

Fees applicable to apartments will range from VND2,100 to VND4,000 per square meter per month for cleaning, operating technical facilities, security, fire exercise and green space service.

Recently, there have been numerous complaints from residents living in Keangnam, The Manor and Golden Westlake, saying that fee levels they pay developers are too high.

For instance, Keangnam’s investor originally charged a fee of VND21,000 per square meter monthly but later reduced it to VND18,600 under pressure from residents.

However, the local authority also noted that fees would be charged in line with provisions regarding services fees specified in the contracts between suppliers and buyers.

The problem is that investors ask for a high fee whilst providing a worse-than-expected service, which is mostly seen in newly-operated apartment buildings, Pham Trung Ha, general director of property company Hoa Phat, pointed out.

The ceiling level at VND4,000 per square meter merely helps enterprises have a base to set a reasonable fee – but fails to allow them to cover all service fees and therefore, the agreement between investors and clients is the key to solving the issue, Ha commented.

Source Saigon Times

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market