Vietnam Management Channel

Twenty-two commercial housing projects in Hanoi approved for foreign ownership

The outside of the Terra An Hung - Ha Dong project in late April, one of the 22 commercial housing projects which foreign buyers are allowed to purchase.

Hanoi City’s Department of Construction has listed 22 developments across the city, some under construction, and some complete, that foreigners can own.

These include projects in the following districts:

• Ha Dong District – Four developments, including: Capitaland’s Hoang Thanh complex, Military Petrochemical’s housing project and Van Phu Invest’s Terra An Hung project

• Hoai Duc District – Two projects which are both in the Nam An Khanh urban area

• Hoang Mai District – One project: The Rose Tower project

• Long Bien District – Three projects, including: The Plaschem apartment, commercial and office complex and a high-end apartment building in the Sai Dong New Urban Area

• Thanh Xuan District – Two projects: The Nguyen Tuan DLC Complex Project and the Stellar Garden Apartment Complex

In addition to the above, other projects that have been listed are in the Ba Dinh, Bac Tu Liem, Cau Giay, Gia Lam and Nam Tu Liem districts.

Previously, the city in late 2019 and early 2020 announced 26 other commercial housing projects where foreigners can buy homes.

Under current government regulations, apartment building and condominiums that allow foreigners need to maintain a ration of 70% Vietnamese and 30% non-Vietnamese ownership. However, foreign demand for ownership in many properties exceeds the government ratios, even when developments have units that have not been bought by Vietnamese.

The Vietnam Real Estate Brokers Association (VREBA) has proposed to both the national and Hanoi government that the ratio of ownership by foreigners in high-end apartment projects be increased.

Tran Minh Hoang, Deputy General Secretary of the VREBA said that data show that foreigners’ demand for real estate in Vietnam is increasing, especially for high-end apartments and resorts.

According to Hoang, many foreigners have large amounts of capital to invest in their homes and are not interested in many affordable and middle-class Vietnamese real estate projects.

Based upon this factor, the VREBA does not believe that foreigners purchasing real estate in high-end projects are competing with most Vietnamese people since the two groups have different demographics, taste in the real estate they want to purchase, and purchase power.

Property consultants, Savills Vietnam note in one of their reports that both Hanoi and Ho Chi Minh City residential real estate, that foreigners want to buy, is priced lower on a per square meter basis than similar real estate projects in Bangkok or Kuala Lumpur.

The VREBA believes that the government should increase the foreign ownership caps in apartment projects to attract capital, increase market transparency and stimulate socio-economic development, and that these increases should not be considered as short-term solution
to restore the property market, post-COVID-19, but should be a long-term policy.

 

 

 

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