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Accordingly, from 2015, amendments to the Law on Housing to allow foreigners to buy houses in Vietnam are seen as a positive move in policy. Generally, the requirements for this type of customer have been specified quite clearly and clearly, thus creating a new demand source and promising to further promote the development of the domestic real estate market.
It is expected that foreigners buying houses after entry will create favorable factors to attract and stimulate the development of many types of real estate such as investment, tourism and services. This would benefit both the economy, complies with international practice and is an effective way of “exporting” real estate at site.
Currently, the legal procedures for owning real estate in Vietnam for foreigners have received very positive feedback from both sellers and buyers after nearly 3 years of implementation.
According to Savills’ observation, in HCMC real estate market alone, over the past two years there have been thousands of successful transactions with foreign customers. In 2017, there were a lot of projects that are owned by foreigners in a short time.
More specifically, a project located in the prime location of District 2 opened for sale in phase 2, the quota for foreigners reached over 30% for a short time and there are still many foreigners can’t buy the apartment.
Major customers of this sale are mainly from Asia such as Korea, China, Taiwan, Hong Kong and Singapore.
Sales manager of Savills HCMC Nguyen Khanh Duy said that in fact, projects and products attracting international buyers are mainly of high-end segment with favorable location accompanying proportionally with high requirement on the quality, services during the consultation and sale process as well as the potential to invest, sublease.
Savills admits that the limitation in the number of apartments allowing foreigners to own is very important, with the goal of minimizing and preventing negative impacts on the economy and society in general.
In particular, pursuant to Circular no. 19/2016/TT-BXD guiding the implementation of the Law on Housing and Decree No. 99/2015/ND-CP issued by the Ministry of Construction regulating about the number of apartments that foreigners are allowed to own in order to tighten resale procedures, increase transparency of the paperwork process and real estate administration.
However, adjustment the limitation to be suitable to some types of real estate in some areas with special needs such as resort properties or Class A condominium is worth considered, because the flexibility to a limited scope instead of a fixed limit will leverage the market.
Especially, Vietnam has more than 82,000 foreigners living and working (statistics from the Ministry of Labor, Invalids and Social Affairs), as well as more than 4 million overseas Vietnamese having special concerns about the homeland.
According to representatives of Savills, several years after amending 2014 Law on Housing, many foreigners have interested in the real estate market in major cities, especially in Ho Chi Minh City, Hanoi and Da Nang.
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However, the number of red books (certificate of land use right) issued to foreign organizations and individuals buying houses in Vietnam is still relatively low compared to the interest and needs of customers. These factors limiting that number may include the issuing procedure of red book that needs to be made public instead of concentrating in some central area.
The fact that foreigners have not yet known thoroughly the legal procedures in Vietnam and vice versa, administrative works in some localities are not familiar to foreigners has been temporarily called real barriers in present time.
You are reading the article Savills: “should diversify properties types for foreigners to buy” in the Real Estate category at https://realestatevietnam.com.vn/.
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