Real estate investment in Vietnam: recent openings for foreign investors
Vietnamese real estate law has liberalised benefits to foreign investors. Real estate investment in Vietnam is now possible for foreigners and Viet Kieu.
Vietnamese property market Features
The real estate market in Vietnam is growing thanks to a growing economy and rising middle class, after almost five years of housing crisis. The new laws on land ownership in Vietnam and particularly on housing have helped make the Vietnamese housing market attractive. Vietnam investment in real estate is as follows:
- The average selling price of properties has increased by 3.2% in 2015
- The signing of the sales agreement has increased 116% in Ho Chi Minh in 2015
- Construction is constantly growing: 19,000 buildings are currently planned to be constructed in Hanoi and 15,500 in Ho Chi Minh.
- The occupancy rate was 84% in Ho Chi Minh
- The average rent for apartments in Ho Chi Minh is $23 per sqm.
Contributions of new laws for Vietnam investment in real estate
With new laws on housing law and real estate law, came into force on 1st July 2015, the real estate market in Vietnam is much more secure. The laws have removed barriers to the acquisition of property for foreigners and Viet Kieu. They can legally buy, sell or transfer properties. They can buy any kind of property, but also sublease, inherit or provide guarantees on their real estate.
The reform law has revitalised the Vietnamese real estate market and has demonstrated the opening of Vietnamese real estate to investments. The Government shall ensure the competitiveness of Vietnam for foreign investors and create an environment conducive to international trade.
Foreign individuals and foreign entities have no right to hold more than 30% of the shares of a building or over 250 properties in the same neighbourhood. However, some gaps remain. The circulars destined to throw some light on the two laws in 2015 on housing and land ownership have not been accepted. Moreover, the administrative procedure has not been simplified.
Vietnamese-Attorney.com can advise you on real estate investment in Vietnam. Ask online for a free no-obligation quote.