Vietnam to Permit Foreign Ownership of Apartments

  • 16 years ago
  • Uncategorized
Vietnam’s National Assembly recently adopted a resolution that permits foreigners who live in the country to purchase apartments. This will aid the country’s real estate market and give a boost to international companies who do business in Vietnam, and particularly their employees who live and work there. 

Ho Chi Minh City, formerly Saigon, is the main economic and cultural center for the country and it will be affected most directly by the new resolution. There are a number of industrial parks and residential cities in and around the greater metro area, and these will benefit as soon as it goes into affect in the beginning of next year. For example, one area that will be affected is the Phu My Hung residential zone south of Ho Chi Minh City and is often referred to as South Saigon. This zone is home to around 5,000 foreigners, most of whom are renting and many would like to own an apartment, according to Truong Quoc Hung, the marketing and business director of Phu My Hung Joint Venture Company.

Some of those who currently rent in the more exclusive residential zones are looking forward to the prospect of being able to buy their housing and not having to pay high rents. Although foreign residency in Vietnam is currently tightly restricted, the number of high quality living units is relatively small and rents are very high. Van Phat Hung Joint Stock Company General Director Truong Thanh Nhan said the decision will help boost the demand for more and better accommodation in the future. Most foreigners enjoy reasonably good financial conditions and are looking for higher end housing.

He said his company has contacted European and US design firms to provide consultations on apartment designs that appeal to foreigners tastes. The company has also started to conduct a survey on foreigners’ demands for apartments in the country.

The resolution will become effective on a trial basis on January 1, 2009

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