Overseas property investors looking for a less traditional destination in which to buy a home may wish to check out Vietnam.
The Vietnam government has recently revealed that it will lift restrictions on foreign ownership of property in the country in an attempt to revive the country’s property market. Since the country’s housing market burst three years ago there has been an oversupply of properties in the country with many domestic buyers unable to afford the available abodes and foreigners put off by the red tape surrounding overseas home ownership.
From 1st July 2015, however, foreign investment funds, foreigners holding any valid visas, international firms with operations in Vietnam and Vietnamese people living overseas will be allowed to buy residential properties, including both freestanding homes and apartments.
Although there is no limit on the number of dwelling units a foreigner or foreign company can buy, the total number of dwelling units owned by foreigners must not exceed 30 per cent of the total units in one apartment complex, or not exceed 250 landed property units in one town or city.
The government is hopeful that by removing many of the conditions currently placed on foreign ownership of property, demand will be lifted and market liquidity will be improved, especially for mid-to-high end residential housing as well as vacation and/or second homes.
“The relaxation of foreign ownership restrictions is more significant than anticipated and marks a strong step towards opening up the Vietnam real estate market to overseas investment,” stated Dung Duong, CBRE’s Head of Research for Vietnam.
Article published 5th December 2014