Expanding foreign home buyers is now very necessary to help foreignersenjoy a better life in Vietnam as well as help boost the domesticreal estate market.
The Vietnam Law and Legal Forum magazinepublished by the Vietnam News Agency highlighted this issue in its issueNo. 224 - April 2013.
Four years after Vietnam allowedforeigners to buy homes in the country, only 427 foreigners, includingoverseas Vietnamese, officially owned a Vietnamese home, according tostatistics of the Land Administration under the Ministry of NaturalResources and Environment.
This figure was so modest compared with the number of foreign residents in the country which now reached some 80,000.
Thepolicy to allow foreigners to buy homes in Vietnam was introduced in2008 under National Assembly Resolution No.19 which allowed foreignorganisations and individuals to buy and own homes in Vietnamstarting from 2009.
But strict restrictions on foreign homebuyers and their limited right to own and transfer property havediscouraged foreigners from buying homes in Vietnam even though theirhousing demand was high, estimated at around 1 million square metres.
Underthe resolution, foreigners eligible to buy houses include five groups:direct investors in Vietnam or holders of managerial posts hired byforeign businesses in Vietnam; persons who are awarded orders or medalsby the President for their contributions to Vietnam, or as decided bythe Prime Minister; holders of tertiary or higher degrees working insocial and economic fields and specialists in fields which Vietnam hasdemand for; spouses of Vietnamese citizens; and foreign-investedenterprises not engaged in real estate business which buy houses fortheir employees.
To own a home in Vietnam, a foreigner mustbe allowed to reside in the country for at least one year and not beentitled to diplomatic immunities. He can own an apartment for maximum50 years and use it only for residence without leasing or using it as anoffice or for other purposes.
Analysts said the Governmentshould expand target beneficiaries and ease procedures for foreigners toown homes in Vietnam to warm up the sluggish real estate market whichnow have some 26,000 apartments left unsold in Hanoi and over 20,000apartments in Ho Chi Minh City .
Foreigners buying homes inVietnam will have positive impacts on the property market, making itreach market economy standards, said former State Bank governor Cao SiKiem, stressing that it is now the time for the Government to legalisethe home ownership of foreigners in Vietnam rather than to pilot itas currently.
The Government should allow foreigners to buy andown homes in Vietnam as a way to increase liquidity of the domesticproperty market, said Le Hoang Chau, president of the Ho Chi Minh CityReal Estate Association.
Real estate inventories in the country’stwo largest cities of Ho Chi Minh and Hanoi are mostly luxury andhigh-class apartments hardly affordable to Vietnamese, Chau said, seeingexpansion of foreign home buyers as an option to boost sale.
ToNguyet Minh from a real estate consultancy firm agreed that foreigners’home purchase will help trigger demand for the real estate market as itwill break the market’s psychology to watch for lower prices. Oncesales picked up, demand will probably rise as buyers might be afraid ofloosing good chances to own property, Minh said.
Allowingforeigners to own homes is a practical policy to promote investment andeconomic development, creating conditions for foreigners to settle inVietnam, Minh said.
Former Deputy Minister of Natural Resourcesand Environment Dang Hung Vo stressed this move will help not only warmup the market but also build confidence for foreign investors to makelong-term investment in Vietnam.
Foreigners buying houses shouldbe regarded as on-the-spot export, lawyer Tran Vu Hai said, recommendingforeigners should be allowed to buy high-grade apartments (worth100,000 USD or more) in unlimited number with simple procedures.
Analystssaid the Government should consider allowing foreigners not only to ownhomes but also to sell or lease them, which was quite reasonable.
Vietnam should remove all barriers for foreigners to buy homes inthe country, said Vietnam Construction Association Vice President PhamSy Liem who saw no reason for keeping financially viable foreigners fromacquiring housing products.
To encourage foreigners to buyhouses, the Government needs to speed up the grant of home ownershipright certificates, an investor from the Republic of Korea said, citingthe time to obtain such a certificate might last two years which, inmany cases, is longer than the stay of a foreigner in Vietnam.
TheMinistry of Construction is considering expanding foreign home buyersand easing home purchase conditions, particularly for luxury apartments,a solution to rescue the real estate market, Minister of ConstructionTrinh Dinh Dung said, adding the ministry will make proposals to theGovernment for submission to the National Assembly this year.-VNA
The Vietnam Law and Legal Forum magazinepublished by the Vietnam News Agency highlighted this issue in its issueNo. 224 - April 2013.
Four years after Vietnam allowedforeigners to buy homes in the country, only 427 foreigners, includingoverseas Vietnamese, officially owned a Vietnamese home, according tostatistics of the Land Administration under the Ministry of NaturalResources and Environment.
This figure was so modest compared with the number of foreign residents in the country which now reached some 80,000.
Thepolicy to allow foreigners to buy homes in Vietnam was introduced in2008 under National Assembly Resolution No.19 which allowed foreignorganisations and individuals to buy and own homes in Vietnamstarting from 2009.
But strict restrictions on foreign homebuyers and their limited right to own and transfer property havediscouraged foreigners from buying homes in Vietnam even though theirhousing demand was high, estimated at around 1 million square metres.
Underthe resolution, foreigners eligible to buy houses include five groups:direct investors in Vietnam or holders of managerial posts hired byforeign businesses in Vietnam; persons who are awarded orders or medalsby the President for their contributions to Vietnam, or as decided bythe Prime Minister; holders of tertiary or higher degrees working insocial and economic fields and specialists in fields which Vietnam hasdemand for; spouses of Vietnamese citizens; and foreign-investedenterprises not engaged in real estate business which buy houses fortheir employees.
To own a home in Vietnam, a foreigner mustbe allowed to reside in the country for at least one year and not beentitled to diplomatic immunities. He can own an apartment for maximum50 years and use it only for residence without leasing or using it as anoffice or for other purposes.
Analysts said the Governmentshould expand target beneficiaries and ease procedures for foreigners toown homes in Vietnam to warm up the sluggish real estate market whichnow have some 26,000 apartments left unsold in Hanoi and over 20,000apartments in Ho Chi Minh City .
Foreigners buying homes inVietnam will have positive impacts on the property market, making itreach market economy standards, said former State Bank governor Cao SiKiem, stressing that it is now the time for the Government to legalisethe home ownership of foreigners in Vietnam rather than to pilot itas currently.
The Government should allow foreigners to buy andown homes in Vietnam as a way to increase liquidity of the domesticproperty market, said Le Hoang Chau, president of the Ho Chi Minh CityReal Estate Association.
Real estate inventories in the country’stwo largest cities of Ho Chi Minh and Hanoi are mostly luxury andhigh-class apartments hardly affordable to Vietnamese, Chau said, seeingexpansion of foreign home buyers as an option to boost sale.
ToNguyet Minh from a real estate consultancy firm agreed that foreigners’home purchase will help trigger demand for the real estate market as itwill break the market’s psychology to watch for lower prices. Oncesales picked up, demand will probably rise as buyers might be afraid ofloosing good chances to own property, Minh said.
Allowingforeigners to own homes is a practical policy to promote investment andeconomic development, creating conditions for foreigners to settle inVietnam, Minh said.
Former Deputy Minister of Natural Resourcesand Environment Dang Hung Vo stressed this move will help not only warmup the market but also build confidence for foreign investors to makelong-term investment in Vietnam.
Foreigners buying houses shouldbe regarded as on-the-spot export, lawyer Tran Vu Hai said, recommendingforeigners should be allowed to buy high-grade apartments (worth100,000 USD or more) in unlimited number with simple procedures.
Analystssaid the Government should consider allowing foreigners not only to ownhomes but also to sell or lease them, which was quite reasonable.
Vietnam should remove all barriers for foreigners to buy homes inthe country, said Vietnam Construction Association Vice President PhamSy Liem who saw no reason for keeping financially viable foreigners fromacquiring housing products.
To encourage foreigners to buyhouses, the Government needs to speed up the grant of home ownershipright certificates, an investor from the Republic of Korea said, citingthe time to obtain such a certificate might last two years which, inmany cases, is longer than the stay of a foreigner in Vietnam.
TheMinistry of Construction is considering expanding foreign home buyersand easing home purchase conditions, particularly for luxury apartments,a solution to rescue the real estate market, Minister of ConstructionTrinh Dinh Dung said, adding the ministry will make proposals to theGovernment for submission to the National Assembly this year.-VNA
