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Facilitate foreigners tobuy houses in Vietnam

(02:50:18 PM, 26/09/2017)

Demand for buying houses in Vietnam of foreigner is quite high

The policy allowing foreigners to buy house has taken effect but it is not very clear so that the number of transactions of foreigners buying real estate in Vietnam has increased but not yet met the actual demand.

* Large cities have foreigners who own houses

Currently, Vietnam has more than 82,000 foreigners as well as more than 4 million compatriots living and working in Vietnam. Therefore, their demand for owning houses is also not small.

There are some cities that attract special attention of foreigners including Ho Chi Minh City, Hanoi and Da Nang. According to Mr. Director - Residential Sales Department Savills HCMC, from 2015, a number of amendments of the Housing Law allowing foreigners to buy houses in Vietnam is considered as a positive change.

According to Savills' observation, only the real estate market in HCMC in the last two years, there were thousands of successful transactions with foreign customers. In 2017, there have been many projects reaching the maximum foreign customers in a short time.

For example, a project located in the prime location of District 2 opened for sale in the second phase, the quota for foreigners reached over 30% in a short time and many foreigners did not get the purchasing chance. The customers in this sale are mainly from Asia countries such as South Korea, China, Taiwan, Hong Kong and Singapore.

* Many changes in policies and laws

According to Mr. Nguyen Trong Ninh, Director of the Housing and Real Estate Market Management Department under the Ministry of Construction, the number of people buying houses in nearly eight years was only about 126. Therefore, the Ministry of Construction proposed to expand the objects and conditions for foreigners to buy and own houses in Vietnam. This proposal was final approved by the Government and the National Assembly according to the Housing Act 2014.  After that, over 750 foreigners have been issued certificates, 6 timeshigher than that in 8 years of implementing the old policy under the Resolution No. 19/2008/QH11.

Actually, the Housing Law allows foreigners to own real estate but the Land Law does not have any regulations related to the land ownership associated with real estate, which also causes difficulties in application for buyers and consulting agencies. Explaining on this issue, the Ministry of Construction said that currently, according to the Vietnam Housing Law 2014, foreignerare allowed to own houses for maximum of 50 years from the date of certificateissuance and it can be extended once for another 50 years. This duration of ownership is specified in the certificate.

Therefore, under Clause 3, Article 126 of the Land Law 2013, the people who buying house associated with land use rights will be granted with the stable and long-term use of their asset. This is a general rule for housingbuyers associated with land use rights in Vietnam. For foreigners, they will be issued with a certificate of land use right in accordance with the term of the housing ownership in accordance with the Law on Housing.

Thus, the law on land and housing have specific provisions on the ownership of housing associated with the land use rights of foreigners in Vietnam. At the same time, many "obstacles" are gradually clarified such asthe regulation on the number of houses in buildings and housing projectsthat foreign organizations and individuals can own to ensure that this regulation is not too tight but still in accordance with the actual conditions of Vietnam and international practices.