Foreigners buy houses in Vietnam – stimulus resource for real estate
On July 1st 2015, the law for foreigners to buy houses in Vietnam began to take effect.
This will make the real estate market have a larger demand. Thus, for approaching international standards, the investors have to adjust operations, ways of working and management to introduce the products with strict requirements on quality and attentive service … so as to meet the requirements of this new market.
To help readers have more information about the policy for foreigners to buy houses in Vietnam, Phu My Hung Journal has a quick exchange with lawyer Truong Thi Hoa on this matter
Can you give detailed information about the condition of foreigners to buy houses in Vietnam as well as the rights and scope of use of the property?
Lawyer Truong Thi Hoa: From July 1st 2015, foreigners can own houses in Vietnam through the form of purchase, hire-purchase, donation or inheritance including apartments, detached houses (villas, semi-detached houses, independent houses) in investment projects in housing construction, except the guarantee of defense and security in accordance with the provisions of the Government of Vietnam.
Foreigners allowed to buy houses in Vietnam as mentioned above are those who are granted entry into Vietnam, are not entitled to privileges and immunities of diplomatic and consular prescribed by law. The purchase of houses must comply with the following provisions:
1/ Only purchase, hire purchase, donate, inherit and own not more than 30% of the apartments in an apartment building; in case of the individual houses including villas, semi-detached houses, in an area with a population equivalent to a ward-level administrative unit, foreigners can only purchase, hire purchase, donate, inherit and owne not more than 250 houses.
2/ In case of a region with a population equivalent to a ward-level administrative unit that has many condominiums or for individual houses on a street, the Government shall have regulations on the particular number of apartments, number of individual houses which foreign organizations and individuals are allowed to purchase, lease, donate, inherit and own.
3/ To own houses as agreed in the contract of sale transactions, leasing, donation or inheritance but not exceeding 50 years from date of issuance of the certificate and may be extended under the provisions of the Government if required; housing ownership period must be specified in the certificate.
4/ In case of foreign individuals married to a citizen of Vietnam or married to a Vietnamese residing abroad can own a stable, long-term house and have the rights and obligations of house owners as citizens in Vietnam.
5/ Before the expiry of home ownership, the owner can give or sell these houses to the entities eligible to own houses in Vietnam; if exceeding the expiry of house ownership and the owners have not sold or donated the house, the house will be owned by the state.
6/ To rent houses to be used for purposes not prohibited by law, but prior to housing rental, the owner must give written notice of the housing rental with housing authorities of the district prescribed by the Minister of Construction and has to pay tax from the operation of housing rental under the provisions by law.
7/ Make payment for purchase, hire purchase housing through credit organizations operating in Vietnam.
What basic things should foreigners pay attention to when deciding to buy houses in Vietnam?
Lawyer Truong Thi Hoa: Foreigners must pay attention to the legal issues related to investment projects, should choose reputable investors in real estate market for housing delivery deadlines, quality of construction, design and usability. Also, according to us, foreigners should pay attention to the project site because the location is related to safe and peaceful living environment and to convenient traffic.
According to you, how does the legislation to allow foreigners to own property in Vietnam have an impact on the market?
Lawyer Truong Thi Hoa: In our opinion, the provisions of the Housing Law, Land Law … concerning the right to buy houses, housing ownership by foreigners create more resources for real estate stimulus so that Vietnam real estate market has more conditions to recover after more than 7 gloomy years. The regulation on foreigners to buy houses and the rights to own houses in Vietnam is in line with the trend of integration of Vietnam in the region and internationally because the general trend is to allow foreigners to purchase and to own houses.
OPINIONS OF FOREIGNERS ON HOMEOWNERSHIP IN VIETNAM
Mr. Renger Dominique – French
I think this is a good signal for the real estate market after five years of experimental work for foreigners to buy houses. From July 1st the regulation for foreigners to buy houses in Vietnam has become easier and this will help more foreigners have conditions to purchase houses. Some of my friends as well as my colleagues are very concerned about this provision because they really want to buy houses in Vietnam. If there are explicit laws regulating property ownership, it will be very favorable to purchase houses. They are also interested in the project’s location and design. Concerning the design, they prefer large airy projects, with beautiful and reasonable design.
Some of my friends in Hong Kong and Singapore are also interested in housings in Phu My Hung. Houses in Hongkong, Singapore are very expensive, so they want to buy houses here. High liquidity of real estate in high Phu My Hung is also a factor attracting them. They especially like the apartments that have high ceilings, airy and apartments with majestic design. I think the real estate market in the future will be more competitive because foreigners in general are quite careful when choosing accommodation or good location of the property.
Mr. Kim Jeong Hoon – Korean
I have lived and worked in HCMC for about 5 years and wish to be able to stay in Viet Nam longer. The law to 
allow foreigners to buy houses in Vietnam is something I’m very interested in. Currently, we only get 50 year- home ownership when buying a house in Vietnam. I do hope that, in the future, the law can be adjusted so that we can own stable property for a long time as citizens of Vietnam.
When buying a house, I pay attention to the security first, then the landscape and environment and utilities. I have bought a house in Vietnam, an apartment in Scenic Valley on the offering on June 6th by the drawing method. I like this project because it has a good visual environment, especially near the center of Phu My Hung with Crescent Mall, Saigon Exhibition & Convention Center – SECC.
Mr. Sudeep Bansal – Indian
All rented apartments give me a sense of not being at home. My concept about the house: it must be my own house, home is a place belonging to me, is a part of mine and my family and ours. To be allowed to buy any kind of property legally, to live and enjoy benefits like any resident of that country is the very warm feeling when living away from home. That is the wonderful feeling when living in a country that can give me such entitlement.
Allowing foreigners (with entry visa to Vietnam) to buy houses in Vietnam is a timely decision of the government of Vietnam and for expatriates, this is welcome. This also creates good reasons to buy a house in Vietnam. If I am allowed to own a house, I will choose Phu My Hung with one simple reason: here there is a high level living environment and opportunities for interaction between cultures.
Safe living environment with all amenities and entertainment for all ages. Wide roads, an international educational environment, advanced health care utilities. The ever- increasing added values to the residents are the factor for me to choose Phu My Hung.
Article : Le Dung
Photos: Nguyen Huu Vu – Phan Quang
