Saigon Center at Tet holiday

As of July 1^st 2015, foreigners with valid Visas can now buy a house, apartment or building anywhere in Vietnam.  This is the first time property has been made available to foreigners without family ties to Vietnamese nationals.

Though there is broad availability, some limitation on supply exists: in each ward (or Phuong) 250 houses, and 30% of apartment blocks are available to foreigners.  New developments are being built to increase capacity and cater to foreign tastes and standards, and prospects for growth – thanks to pro business legislation and infrastructure investment – are excellent.

Who can buy:

Previously, only blood relatives of Vietnamese nationals and foreigners married to locals were permitted to buy property here.  As of July 1^st 2015, property is now available to:

• Foreign nationals with a valid Vietnamese visa of one day or more.
• Foreign investors and companies registered in Vietnam
• Viet Kieu: people of Vietnamese birth or descent resident abroad.

What are the conditions?

The Vietnamese constitution states that all land is owned by the state.  The property on that land is purchasable, however.  The terms will initially be for up to 50 years, with an extension of 50 years thereafter.  Rights of sale after expiration of the term are guaranteed on a free-market basis, meaning equity can be retained.

About the Vietnamese property market

The market has a strong cost to growth potential ratio, given the stability of the Government and its commitment to attracting foreign investment, particularly in comparison with saturated and politically uncertain neighbors like Thailand and Malaysia.

Though there has been a slowdown, growth – unlike in many Western countries post-2008 – has continued.  The economy, driven by manufacturing and exports, grew at a rate of 5.98% GDP, with growth of 13.6% expected by 2025.

What parts of Vietnam are attractive to foreigners?

Foreign attention is focused on areas rich in commercial possibility:

• Ho Chi Minh City, commercial and investment capital of Vietnam
• Hanoi, seat of government and cultural center
• Nha Trang and other coastal regions popular with foreigners (Russians in particular) and local tourists
• Phu Quoc, an island primed for vast commercial and tourism investment
  
  

  Ho Chi Minh City overview                      

How much is a typical property?

Prices are competitive but vary according to type, style and location:

Homes and villas:

Typical 3-bed family homes come in at

• Ho Chi Minh City: $50,000 to $250,000
• Nha Trang: $50,000 to $ 100,000
• Hanoi: $100,000 to $300,000

Around $1.000.000 to $1.500.000 buys a luxury, 5-bed property.

Apartments

A Western-style apartment with 3 bedrooms in a new, purpose-built development starts at Ho Chi Minh City: $50,000, rising to $150,000.  Other units consider luxury apartments begin at $250,000.

Beautiful riverside Saigon Pearl apartment price from $100.000

How does this compare with neighbors?

Neighboring countries are seeing lower growth prospects and overheated real estate markets.  Other ASEAN governments are seeking to limit rather than encourage foreign ownership.

In Bangkok, prices can start at around $1million for a condominium, while at the lower end foreigners are required to invest a minimum $250,000.  Investors have seen a yield of as little as 5% as the Thai economy suffers a prolonged period of low growth.

In Kuala Lumpur, a similar minimum of $250,000 is required for foreigners to invest in the market, while in Indonesia there are substantial hurdles for any foreigner to buy property.

What else should an investor know?

There is a genuine upward curve to Vietnamese investment prospects, with international agreements and accompanying infrastructure development looking to boost property values substantially over the next decade.

The Trans-Pacific Partnership (TPP) will soon come into force, and Vietnam is expected to benefit most from membership of the world’s largest trading bloc. Closer to home, South-East Asian economic ties will be solidified and enhanced by membership of the ASEAN Economic Community (AEC), raising prospects and standards still further.

Vietnam is preparing the way for greater investment and collaborations through infrastructure and developments, such as:

• A brand new Metro system in Ho Chi Minh City, which is expected to have a dramatic impact on property values;
• New international airports, catering for expected increases in tourist numbers;
• New highways and inter-city railways.

While the future looks bright, Vietnam remains a developing country, and the potential for growth reflects the fact that the landscape is far from perfect.  Corruption and bureaucracy – long felt to be Vietnam’s greatest hindrance – are being acknowledged and challenged as a priority as the country seeks to integrate still further with the international community.  Uncertainty over future legislation is tempered by recognition that Vietnam has one of the most stable governing regimes in Asia, benefiting growth prospects.

Benthanh Market, symbol of development in Saigon

Overall however, the picture is very positive.  In addition to the positive economic forecasts, Vietnamese people welcome foreigners to one of the most optimistic nations in the world, a nation with high literacy, improving education and knowledge of English and strong work ethic.

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Stay tuned to this blog for further updates on the market.  If you have any question or need advice requirements about property Vietnam, please contact us.

VietApartment NEWS

In section 6 of the new real estate law issued in 2014, Vietkieu has ability to buy property in Vietnam in the same right as Vietnamese. It means that Vietkieu has no limit in the number of apartment or property in one project or has no limit of 500 sqm of the property their buy. These privilige applied only when Vietkieu has been certified origional hometown in Vietnam therefore some paper of instruction should be noted. The problem is when Vietnamese move out of Vietnam and they lost all of paper then which organization could official certified for them? In order to solve this problem, the head of Horea Mr. Le Hoang Chau propose that the original of Vietkieu should be noticed by the hometown on the passport of America. From the second generation forths, it should be a paper shown the relationship with the fisrt one has these criteria.

About the real estate market after the first day of new law application, foreigners and Vietkieu are still finding the best way to know all the law and ensure that their investment will be protect in the future. Number of transaction is not high as expected of many experts. That is some information we collect form some project like Vinhomes Central Park and The Sun Avenue apartment in District 2.

The new law of foreigner can buy and own property in Vietnam is just applied one day and you should, as foreigner and Vietkieu should carefully read it. We want to remind you again following.

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VietApartment NEWS

Along with these high premium projects, that is the policy and law that ensures foreign investors and customers can buy and own it easily. No difficulty and no unclear situation. That is the begining of the new story of history and we would like to tell you all. Not too much of the law but it enough for you to have a clear information about owning properties in Vietnam.

Section 159. The object owns house and housing ownership forms of foreign individual and organization in Vietnam.
1. Foreign individuals and organization having properties ownership in Vietnam including:
a) Foreign individuals and organization invest in constructing house under project form following this law and related legislation terms.
b) Enterprise with foreign capital investment, sections, office of foreign enterprise, foreign funds and foreign bank section operating in Vietnam (call shortly foreign organization)
c) Individuals have right to enter Vietnam territory
2. Foreign organization and individuals having a properties ownership in Vietnam under following forms:
a) Investment in construction house in project in Vietnam follow this Law and related legislation terms.
b) Buy, rent-buy, dedication, inherit commercial house including apartment and single house in project of constructing house investment, excluding national defense and security region as stipulated by Vietnamese Government.

Section 160. Criteria when foreign individual and organization having properties ownership in Vietnam:
1. Towards organizations and individuals specified in point a, paragraph 1, section 159 of this Law must have the certificate of investment or housing construction in project in accordance with the provisions of this Law and related legislation terms.
2. Towards foreign organization specified in point b, paragraph, section 159 b of this law, there must have investment certificates or documents relating to the permitted activities in Vietnam (hereinafter referred to as the investment Certificate) issued by the competent officers of Vietnam Government.
3. Towards foreign individuals specified in point c, paragraph 1, Section 159 of this Law must be allowed to enter Vietnam territory and not entitled to the privileges, immunities of diplomatic, consular prescribed by law.
4. Government regulate certificate in detailed proof of the object, condition of foreign organizations, individuals are entitled to properties ownership in Vietnam.

Section 161. Properties Ownership rights of foreign organizations and individuals
1. Foreign organizations and individuals specified in point a, paragraph 1, section 159 of this Law are having the rights of properties ownership in accordance with the provisions of section 10 of this Law; In case building on leased land, foreign organizations individuals only have rights to lease.
2. Foreign organizations and individuals specified in point b and point c, paragraph 1, section 159 of this Law having all the right of properties ownership as much as Vietnam citizen but must comply with the following provisions:
a) Have rights to buy, to lease, donation, inheritance and ownership not exceed 30% number of the apartments in a building; for the single houses including villas, ranging houses, foreign organizations and individuals have rights to buy, rent, donation, inheritance not exceed number of 250 properties within a region equivalent of a ward-level administrative units.
In some region with a population equivalent of a ward-level administrative unit that has many condominiums, single houses on one street, the Government shall specify the number of apartments, number of single houses that the foreign organizations and individuals have rights to buy, lease, donate, inherit and own;
b) In case, organizations and individuals are dedicated, donated out of provisions of point b, paragraph 2, section 159 of this law or exceed the number of properties specified at this paragraph a shall only own the value of this properties;
c) Foreign individuals own properties as agreement in the contract of sale, rent, donate, inherit transaction not exceeding 50 years from the issued date of certificate and can be extended under the provisions of the Government if required; properties ownership period must be specified in the certificate.
In case a foreign individual gets married to a Vietnamese citizen or get married to a Vietnamese living abroad, have ownership rights in stable, long-term and the rights of properties ownership right as Vietnamese citizen;
d) To foreign organization own the properties following the contract of sale, rent, dedicate, inherit transactions not exceeding the time limit stated in the certificate of investment of that organization, including extended period of time; properties ownership period is calculated from the date of the certificate and stated in this certificate;
đ) Before the expiration date of properties ownership in accordance with the provisions of this Law, the owner can donate or sell this properties for the subjects able to own properties in Vietnam; If exceeding the deadline of ownership and the owner does not sell or donate, this properties will be owned by the state.
Section 162. Obligations of the property owner who are foreign organizations, individuals.
1. Foreign organizations and individuals specified in paragraph 1 of Section159 of this Law shall have the obligations of properties owners in accordance with the provisions of Section 11 of this Law.
2. Foreign organizations and individuals specified in points b and c, paragraph 1 of Section 159 of this Law shall have the obligations of properties owner like Vietnamese citizen but comply with the following provisions:
a) Foreign owners have rights to lease properties to use for purposes not prohibited by law, but prior to rental properties, the owner must provide written notice of the rental to administrative authorities in the district where properties in, under the guidance of the Ministry of Construction and pay all the tax accordance with the provisions of this law.
In case foreign individual gets married to Vietnamese citizen or Vietnamese living abroad have obligations as well as Vietnamese citizens;
b) For owners are foreign organizations use properties to arrange place for people working in that organization only, not use for rental housing, office or on other purposes;
c) Conduct payment for the selling, renting properties through credit institutions operating in Vietnam;

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VietApartment NEWS