Vietnam seeks to attract more foreign home buyers

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Hanoi propertyThe Vietnamese government is planning to make it easier for foreigners to buy real estate in Vietnam. The Ministry of Construction’s has proposed that non-nationals with a visa valid for at least three months would be able to buy property in Vietnam.

It is hoped the proposal would increase sales to foreigners after a five-year pilot programme only achieved around 120 sales, with most foreign buyers being married to Vietnamese nationals.

Market expert Dang Hung Vo says the new plan would help gradually improve market liquidity but would not work in the long run.

”It is more important that policy-makers and real estate enterprises create a favourable environment for foreigners to choose the property market as a destination for their investments,” he said.

The policy allowing foreigners to buy houses was first introduced in 2009 through the National Assembly’s Resolution 19. Due to strict regulations, only 121 foreigners owned houses in Vietnam and there were 400 overseas Vietnamese owners. The figures were modest, seeing that there are around 80,000 foreigners living and working in the country. The ministry’s report showed that most of the more than 100 foreigners who owned houses in Vietnam are married to Vietnamese.

The Ministry of Construction has asked people’s committees of cities and provinces nationwide to relax property ownership laws for overseas Vietnamese following Decree No. 71/2010/ND-CP. This would also mean that overseas Vietnamese no longer need to show a permanent address and valid identity card when notarising and certifying real estate transactions.

Stephen Wyatt, who has just been appointed as country director for Vietnam at the global real estate consultancy firm Jones Lang LaSalle, told The Saigon Times Daily, “As the above figures suggest, the pilot programme that allows foreign purchasers to buy residential property in Vietnam has received a lukewarm response.

“This can be attributed to a number of reasons, first and foremost the domestic economy and property market in Vietnam over the past five years has suffered and the majority of foreigners looking to buy residential property have looked for ‘safe havens’ to invest, such as London, New York, Hong Kong and Singapore. Second, the regulations within Vietnam for foreign ownership are considered unclear by many foreigners and then there is the obvious language barrier,” Wyatt said.

“The new regulations proposed for Vietnam should be acceptable to most foreigners especially if the length of lease could be extended to over 50 years or the lease can be extended for a further fifty years and the ownership structure is clear and transparent,” he added.

He says the move is a positive step, but there is unlikely to be a massive influx of foreigners buying property in Vietnam.

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Reading Time: 2 minutes

The Vietnamese government is planning to make it easier for foreigners to buy real estate in Vietnam. The Ministry of Construction’s has proposed that non-nationals with a visa valid for at least three months would be able to buy property in Vietnam.

Reading Time: 2 minutes

Hanoi propertyThe Vietnamese government is planning to make it easier for foreigners to buy real estate in Vietnam. The Ministry of Construction’s has proposed that non-nationals with a visa valid for at least three months would be able to buy property in Vietnam.

It is hoped the proposal would increase sales to foreigners after a five-year pilot programme only achieved around 120 sales, with most foreign buyers being married to Vietnamese nationals.

Market expert Dang Hung Vo says the new plan would help gradually improve market liquidity but would not work in the long run.

”It is more important that policy-makers and real estate enterprises create a favourable environment for foreigners to choose the property market as a destination for their investments,” he said.

The policy allowing foreigners to buy houses was first introduced in 2009 through the National Assembly’s Resolution 19. Due to strict regulations, only 121 foreigners owned houses in Vietnam and there were 400 overseas Vietnamese owners. The figures were modest, seeing that there are around 80,000 foreigners living and working in the country. The ministry’s report showed that most of the more than 100 foreigners who owned houses in Vietnam are married to Vietnamese.

The Ministry of Construction has asked people’s committees of cities and provinces nationwide to relax property ownership laws for overseas Vietnamese following Decree No. 71/2010/ND-CP. This would also mean that overseas Vietnamese no longer need to show a permanent address and valid identity card when notarising and certifying real estate transactions.

Stephen Wyatt, who has just been appointed as country director for Vietnam at the global real estate consultancy firm Jones Lang LaSalle, told The Saigon Times Daily, “As the above figures suggest, the pilot programme that allows foreign purchasers to buy residential property in Vietnam has received a lukewarm response.

“This can be attributed to a number of reasons, first and foremost the domestic economy and property market in Vietnam over the past five years has suffered and the majority of foreigners looking to buy residential property have looked for ‘safe havens’ to invest, such as London, New York, Hong Kong and Singapore. Second, the regulations within Vietnam for foreign ownership are considered unclear by many foreigners and then there is the obvious language barrier,” Wyatt said.

“The new regulations proposed for Vietnam should be acceptable to most foreigners especially if the length of lease could be extended to over 50 years or the lease can be extended for a further fifty years and the ownership structure is clear and transparent,” he added.

He says the move is a positive step, but there is unlikely to be a massive influx of foreigners buying property in Vietnam.

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