No wave of foreigners buying houses in Vietnam

18/10/2017 13:42

According to real estate experts: “loosen house purchasing conditions for foreigners is a positive policy but it is not the most optimal solution for Vietnam real estate market.” 

 

 

MoC has recently given the proposal of loosen house purchasing conditions for foreigners in order to handle with inventory and rescue real estate market. Ministry has been giving opinions about the draft of reformed real estate business law and enlarged recommendations.

To Ho Chi Minh real estate Association (HoREA), those recommendations match with international customs. However, it is better once allowing foreigners to buy luxury apartments from more than 21 million VND (equal to $1.000) per square meter to avoid competition and affect on median - to - low income customers.  

Mr. Nguyen Van Duc- vice manager of Dat Lanh real estate Company shared:”This policy is extremely necessary because the Resolution No.19 of loosing house purchasing conditions issued in 2008 is ineffective. Meanwhile the amount of inventory is overflowing. Since the Resolution was piloted until the end of 2nd quarter, there have been 126 people buying and owning houses, mainly in Southern cities such as HCM, Ba Ria Vung Tau, Binh Duong, Khanh Hoa… Nearly 108 cases accounting for 80% are invididuals, others are enterprises. 

Vice-manager at Dat Lanh Real Estate Company said the number of inventories is quite large in which most of properties are expensive. However, many experts said: “Loosen conditions for foreigners to buy houses cannot handle the inventories. Mr. Nguyen Quoc Hiep- CEO at GP-Invest JSC shared: “If waiting for the new Resolution is passed, nothing is changed much.”

CEO of GP-Invest commented: “The number of foreign companies has intension to invest in Vietnam depending on many factors, especially in the context of fluctuated market. Foreigners just want to rent for a short term on their business.”

According to Mr. Nguyen Van Duc even if the policy for foreigners is passed, transactions will slightly increase 3-5%. There will not have any abnormal changes as the buyers are mainly retailers.

Prof. Pham Sy Liem- Vice CEO at Construction Association said: “if MoC’s proposal is passed, it cannot set up a new wake from foreigners. Therefore, it cannot be considered as the most optimal solution.”

 

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