Vietnam allows 3,035 foreigners to purchase homes
Vietnam allows 3,035 foreigners to purchase homes
The sale of homes to foreigners is set to be a significant issue as the National Assembly discusses the amended draft Law on Housing.
Since the 2014 Law on Housing came into effect in Vietnam, 3,035 expatriates have purchased homes, primarily apartments in commercial housing facilities, according to Ministry of Construction (MoC) data.
In terms of foreign organisations and individuals with property ownership in Vietnam, Hanoi has 1,765, Ho Chi Minh City has 850, Bac Ninh has 110, Binh Duong has 210, and Ba Ria-Vung Tau has 50.
The majority of businesses and individuals are permitted to purchase homes in South Korea, China, Singapore, the United States, Australia, Japan, and Malaysia.
Foreigners residing and working in Vietnam have a high demand for housing, including the need to own a home. According to MoC statistics, approximately 4 million expatriates and overseas Vietnamese wish to purchase a home in Vietnam in the near future.
In a report published in July, the Vietnam Association of Realtors (VARS) noted that while the number of expatriates has risen over the past nine years, the demand for home ownership is still very low. Between 2018 and 2022, the number of homes purchased by foreign nationals accounted for less than 0.53 per cent of the nation's total housing volume.
In its report, the VARS stated, "The number of foreigners purchasing homes is an important indicator of the market outlook and the economy's dynamism, openness, and potential."
Resolution No.19/2008/QH12 outlines the policy of permitting foreign organisations and individuals to purchase and own homes in the country. Since the 2014 amendments to the Law on Housing, the number of individuals and organisations that own homes in Vietnam has increased.
Foreigners are able to buy commercial houses in Vietnam under a 50-year lease, receive them as gifts, and inherit them, as long as they own no more than 30 per cent of the apartments in a block or 250 units for separate houses in a residential area.
According to the General Statistics Office, the number of foreign employees licenced to work in Vietnam as of March 2022 stood at 100,000, a near 10-fold increase compared to 2005 when only 12,000 foreigners were authorised to work in the country.
