New foreign ownership restrictions in Vietnamese property market
New foreign ownership restrictions in Vietnamese property market
Foreign entities and individuals can now own up to 30 per cent of the residential apartments in a building, including mixed-use developments, under a new decree effective on August 1.
Foreign investors look at a property project. — Photo tapchitaichinh.vn |
For apartment complexes with multiple blocks sharing a common base, foreign ownership is capped at 30 per cent of the units in each block.
For standalone houses in designated areas with a specified population, foreigners can own no more than 250 units if only one housing development project exists, but in areas with two or more, they can distribute ownership across all projects and the total must not exceed 250 houses.
However, once the 250-house cap is reached in one project, no further purchases can be made within that area.
To extend ownership beyond the initial period, foreigners must submit an application to the provincial People’s Committee at least three months before the expiration date.
The committee has 30 days to approve or reject the request, which can grant an additional 50 years of ownership.
According to the Ministry of Construction, about four million people, including both foreigners and overseas Vietnamese (OVs), are expected to have demand for housing in Việt Nam in the future.
A recent Đất Xanh Services JSC's report indicated that most OVs prioritise mid-range housing for living purpose rather than speculation. Investors tend to seek long-term options with high rental yields.
Suburban areas in HCM City are particularly popular among OVs for asset accumulation due to their prime locations, dense population, and potential for price hike and rental income.
