Since 2015, Vietnam has opened up its various sectors for foreign investors. The country has been very successful in attracting foreigners from around the world who are interested in grabbing a piece of the country’s flourishing real estate market. With its average gross domestic product exceeding 7% each year, Vietnam has been dubbed the “next China”. For the past few years, the country has been blessed with exciting potentials and opportunities for foreign investors.
If you are a foreigner and you’re interested to invest in Vietnam’s property market by buying a new apartment, you must first understand how Vietnam’s property market works.
As stated in Vietnam’s Law on Housing 2014, foreign individuals and organizations are allowed to own houses or apartments in Vietnam if they met certain conditions. So what are these conditions?
Consequently, the category of house ownership in Vietnam covers the following:
👉 1. Foreign individuals are permitted to enter the country.
👉 2. Foreign organizations and individuals who will invest in the construction of houses under projects in the country in accordance with the Law on Housing 2014 and other relevant laws.
👉 3. Foreign-invested enterprises, branches, and representatives of foreign enterprises, as well as foreign investment funds and foreign bank branches that are operating in Vietnam.
At the same time, the law provides for foreign individuals and organizations to own houses in the country in the following ways:
👉 Investing in the construction of project-based houses in Vietnam that are in compliance with the Law on Housing 2014 and other relevant laws.
👉 Purchase, lease-purchase, donation, or inheritance of commercial houses such as apartments and detached houses in the housing construction projects in Vietnam except on areas that are part of the national defense and security regulations.
Given the laws and conditions stated above, a foreigner who has been working and living in Vietnam is, therefore, allowed to own an apartment.
Notes, papers, and other documents proving that the foreign individual has met the conditions to own properties in Vietnam must be submitted. Furthermore, the apartment must be in an area where foreign individuals and organizations are allowed to own houses. Lastly, it should be in compliance with the number of houses that organizations and individuals can own as stated in Article 74, Article 75, and Article 76 of Decree 99/2015/ND-CP.
For full details of the Decree 99/2015/NĐ-CP (in Vietnamese)
Several areas in Vietnam offer favorable conditions for foreigners to purchase a property, whether a house or apartment. However, you should decide depending on what best suits you in terms of infrastructure, geographical area, sizes, and weather. However, here are the best cities in Vietnam to buy an apartment or house.
Hanoi is the cultural and industrial center of Vietnam and has the highest human development index. Therefore, it’s one of the most livable cities in the country. Furthermore, Hanoi is considered one of the fastest-growing cities in the world and will give you plenty of options when it comes to buying apartments in Vietnam. Here, you can purchase a luxurious apartment at an average price of $3,000 per square meter.
As the largest city in Vietnam, Ho Chi Minh continues to attract a large number of locals and ex-pats since the city is also the financial hub of the country. Because of the rapid growth of the population in Ho Chi Minh, more and more apartments are being built each year. Recent statistics show that a total of 60,000 apartment units were built in 2018, and about 66% of the buyers of these units are foreign investors.
Located in the coastal area of central Vietnam, Nha Trang’s economy has increased significantly in recent years, thanks to the booming tourism industry. This economic boom has also led to the increasing demand for new properties in the city. So if you choose to invest in Nha Trang, you certainly have various options to choose from.
As the fourth largest city in Vietnam and home to an International airport that welcomes six million passengers each year, Da Nang, is definitely a favorite destination for foreign property investment. Some of the most popular properties for foreigners to invest in Da Nang are luxurious resorts, hotels, and villas on the beachfront.
Before 2015, a foreigner can only own a maximum of one unit in Vietnam. Nowadays, foreigners are allowed to purchase as many units as they can since there’s no longer a limitation on the total number of units that one can purchase. However, certain restrictions will apply. First, the number of units in one administrative ward that a foreigner can own is limited to only 250 units. Furthermore, a foreigner can only purchase up to 30% of the total number of units in one condominium building.
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