Real estate association against looser foreign property ownership rules

August 15, 2014 | 08:48

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The head of the HCMC Real Estate Association said authorities should not allow foreigners to buy homes in Vietnam even though the Ministry of Construction has been considering looser restrictions.

The Ministry of Construction is considering looser restrictions

Le Hoang Chau, chairman of the HCMC Real Estate Association, confirmed the association's stand. According to Chau, many countries only allow foreigners to buy apartments in specific locations during the first stages of opening their markets.

"For the first five years, Singapore allowed foreigners to buy only apartments. The ban was gradually lifted over the next five years, but buyers still have to pay higher taxes. We shouldn't allow foreigners buy villas and houses yet while external security threats to Vietnam still exist. This would make the situation difficult to control in the future," he said.

Overseas Vietnamese and other foreign passport holders will be permitted to own apartments for a maximum period of 50 years. The Ministry of Construction proposed allowing foreigners buy more types of housing in order to relieve the real estate market slump.

Minister of Planning and Investment Bui Quang Vinh said that investment in the housing market by foreigners could provide a huge boost to the sector.

"The maximum term of ownership for residential property will still range from 50 to 70 years. A lot of people will buy homes if we open this market. We have about 130,000 South Koreans renting apartments in Vietnam because they can't buy houses. Those renters may try to find ways to evade taxes such as claiming lesser rental fees," he said.

Prime Minister Nguyen Tan Dung also gave his support to the proposal.

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