As the Vietnamese property market will likely heat up in the next few years with the construction of new metro lines in Hanoi and Saigon, it may soon be time to hop back on the real estate bandwagon. A new draft decree would make it easier for foreigners to get in on the action, extending ownership periods to 100 years.
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According to Thanh Nien, the decree would allow "foreigners with valid visas, international firms operating in Vietnam and overseas Vietnamese," to double the period of ownership from the 50 years stipulated in an amendment to property laws passed by legislators last November to 100 years.
In addition, foreign individuals married to Vietnamese citizens would be entitled to freehold tenure.
The government hopes that the new regulations will help revitalize the domestic real estate market that has slowed in recent years.
Thanh Nien outlines the effects of the draft decree that is expected to be introduced later this month:
WHO: Foreigners with a valid visa; foreign investment funds, banks; Vietnamese branches and representative offices of overseas companies are eligible to buy.
TYPES: All residential property types including apartments, villas and townhouses. Previously only applicable to apartments.
VOLUME: There is no limit on the number of units a foreigner can buy, but the total number of units owned by all foreign buyers must not exceed 30 percent of the units in one apartment building, or 250 landed property units in one ward. Previously an eligible foreigner could buy only one apartment in Vietnam.
PURPOSE OF PURCHASE: The properties owned by foreigners can be sub-leased, traded, inherited and collateralized. Previously ownership was strictly for residential purpose.
[Photo via Hà Nội: CAPITAL City]
