Refreshing breeze of transparency: a list of ineligible projects

Foreign home buyers laud the government's efforts to bring a measure of transparency to the market

This breeze of transparency is considered a positive step towards encouraging foreigners to purchase accommodation and participate in the Vietnamese real estate business.

According to the Housing Law 2014, which officially entered into force in 2015, all foreign organisations or individuals with a valid visa are eligible for homeownership in Vietnam. However, foreign ownership is limited in special areas, excluding purchasers from land plots directly related to the army, national defence or national security.

The Ministry of Construction (MoC) has stipulated that all information related to foreign homeownership must be made public and posted on the web sites of provincial departments of Construction.

MoC also stressed that if any foreign organisation or individual faces problems in the pursuit of owning a house in Vietnam, they can send their concerns to the ministry to receive prompt assistance.

Foreigners have applauded the government’s active participation and lauded the sentiment to create better conditions for foreign homeownership in Vietnam.

According to Stephen Wyatt, country director of JLL Vietnam, in order to attract foreign buyers, the country needs a clear and transparent system with ample information available to the public, preferably via a website. “It is vitally important that all information is updated on a regular basis, not just for existing projects, but also for all new projects as soon as they are launched,” Wyatt told VIR.

“We always advise foreign buyers looking to invest in Vietnam to carry out full market research and due diligence to ensure the project has all the necessary licences and approvals,” he added.

Wyatt added that he is seeing considerable interest from buyers from Singapore, Korea, Taiwan, Hong Kong, Malaysia, and China. While the numbers are still relatively low compared to the size of the local market, with a clear and transparent system he expects to see the numbers of foreigners to grow over the coming years.

Vietnam, according to Wyatt, offers foreign buyers an opportunity to enter the market with far less capital than they would need in their own countries. For example, a two bedroom apartment in District 2 of Ho Chi Minh City could cost $200,000 whereas a similar apartment in Singapore or Hong Kong can easily cost $1 million and over.

What they don’t tell you when you buy a property? Buying property in Vietnam is one thing and the now not so ‘new’ legislation was a very progressive step and extremely well received. However, when it comes to “cashing in”, selling and renting out your new property, there are a few things you need to know that no one will tell you.

Circular issued to stipulate number of apartments owned by foreigners The Ministry of Construction has issued Circular No.19/2016/TT-BXD guiding the implementation of the Housing Law and Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government guiding the implementation of the 2014 Housing Law.

Advice for foreign home ownership Although the Housing Law of 2014 created favorable conditions for foreigners to own houses here, buying a home is still no easy matter for foreigners given the legal complexity of the real estate sector in Vietnam.

Foreigners still hesitant about buying property in Vietnam A provision contained in the Housing Law two months ago allowed foreigners to buy houses in Vietnam, but most real estate developers still have few foreign clients.

Viet kieu, foreigners invest in homes The changes to the housing law allowing foreigners and Viet kieu (overseas Vietnamese) to buy houses in Viet Nam (from July 1) has had an impact on the housing market.

New housing law triggers market stir Real estate developers are anticipating the implementation of the Law on Housing which opens more rights for foreigners to own property in Vietnam this July. Deputy managing director of Savills Vietnam Troy Griffiths has a look at the proposals.