Doors open for foreign homebuyers

Doors open for foreign homebuyers

Hoa Binh Group has become the first local developer to capitalise on the amended Residential Housing Law to sell apartments to foreigners.

The company has announced that it will earmark a large number of apartments at Hoa Binh Green City project in Hanoi for sales to expats once the law takes effect on July 1, 2015.

The law, which was passed by the National Assembly on November 25, 2014, has created unprecedented opportunities for foreigners to purchase and own residential housing in Vietnam. The relaxation of foreign housing ownership has even gone beyond the expectation of real estate consultants and developers.

Under the former regulations, only some types of foreigners were allowed to purchase only one apartment within 50 years. However, they are not allowed to re-sell or sublease the property. These restrictions have limited the number of foreigners successfully buying residential properties after 6 years of pilot execution of the regulations.

The amended Residential Housing Law is expected to create a new momentum for the real estate market as it has abolished almost all restrictions on foreign buyers.

Now, the foreigners eligible to purchase residential properties include all those who are grated a visa to Vietnam, all foreign investment funds, banks, Vietnamese branches and representative offices of foreign companies.

They are allowed to buy all types of residential sector including condominiums and landed properties such as villas and townhouses. There is no limit on the number of dwelling units a foreigner can buy, but the total number of dwelling units owned by foreigners must not exceed 30 per cent of the total units in one condominium complex.

Duong Thuy Dung, deputy director of CBRE, claimed the relaxation makes the real estate market more attractive to Vietnam-based expats seeking an investment in residential properties in Vietnam and will definitely benefit the already improving residential market.

Nguyen Huu Duong, chairman and general director of Hoa Binh Group, has been excited since the National Assembly passed the amended law. He said foreign homebuyers were interested in living in the inner city and as a result they will select to purchase residential properties in the downtown area rather than in the suburb. Therefore, he has decided to sell a large of number of apartments at Hoa Binh Green City to foreigners this July.

Currently, a handful of foreign businessmen and investors are leasing apartments in the first building of Hoa Binh Green City to live. They have expressed the desire to buy the apartments in the second building when the law takes effect.

The project is attractive to foreign buyers as it is built with high quality, meeting the discerning demand of foreigners. Located at 505 Minh Khai street, Hai Ba Trung district, the property is just three kilometres from the city centre and it is convenient for residents to travel to work in industrial parks in Bac Ninh province or the south of Hanoi.

Hoa Binh Green City is also the first condominium project in Vietnam that has lift doors and toilet items plated with gold. It has a shopping centre in the podium and close to it are Vincom Megamall, AEON Mall and Long Bien golf course.

In addition to Hoa Binh Green City, Hoa Binh Group is also developer of Hoa Binh International Towers in Hoang Quoc Viet street and Hoa Binh Green Apartment in Buoi street. These projects have attracted a lot of foreigners and most of the tenants are Japanese, who are very discerning about construction quality and living environment.

“All our projects are built with high quality and can meet the most discerning demand of foreign homebuyers,” said Duong.