Foreigners owning houses in Ho Chi Minh City: Attractive investment opportunity

The Ho Chi Minh City People's Committee has just announced a list of 48 housing construction investment projects in the area where foreign organizations and individuals are allowed to own houses. Thus, together with the 17 projects previously announced, to date, the city has 65 projects where foreigners are allowed to own houses.

Mostly high-end projects

Of the 48 projects announced this time, there are 40 projects of Phu My Hung Development Corporation, located in Area A, the new urban area of ​​the South of the city (Tan Hung and Tan My wards). In addition, Tan My ward also has 3 other projects of Phu Hung Thai Development Corporation, which are residential areas in lots M5, M6 (Midtown), residential areas in lot M7 (Midtown) and residential areas M8 (Midtown), with a total land area of ​​nearly 45,000 m2.

In Binh Trung ward, there are 2 projects, including: CC1 high-rise apartment complex and CC5 high-rise apartment complex (commercial name is The Privé) of Dat Xanh Group Joint Stock Company, Binh Trung Dong residential area of ​​CVH Mua Xuan Company Limited.

In Cat Lai ward, there are 3 projects of Capitaland - Thien Duc Company Limited: Y2 commercial apartment complex; Y1 high-rise apartment complex with commercial - service, Z2 commercial - service apartment complex.

Some other notable projects in which foreign organizations and individuals are allowed to own houses include: Dragon Village housing area of ​​Dragon Village Real Estate JSC (Long Truong ward), complex residential area on the island - phase 1 of Binh Thien An Real Estate JSC (Binh Trung ward), CC1, CC2 apartment complex (part of Nguyen Son housing project) of Mizuki LLC (Binh Hung commune)...

According to records, 2-bedroom apartments in areas such as Sky Garden 3 or Hung Vuong 2 in Phu My Hung are currently priced at around 2.5 billion VND, while high-end segments such as The Horizon or Cardinal Court range from 8 to 17 billion VND. In Midtown, 2-bedroom apartments with an area of ​​80 - 110 m² are offered for around 7.2 - 9 billion VND, 3-bedroom apartments are nearly 9 billion VND. In Binh Trung area, Dat Xanh's The Privé apartment is priced at 5 - 8 billion VND with an area of ​​49 - 80 m²...

According to the 2023 Housing Law, foreigners are allowed to buy and own houses in Vietnam, including apartments and individual houses in commercial projects, provided they are not located in areas requiring national defense and security. The regulation also clearly states that foreigners are only allowed to own a maximum of 30% of the apartments in an apartment building; no more than 250 units within a ward if they are individual houses.

Speaking to a reporter from Nguoi Lao Dong Newspaper, Mr. Bui Ngoc Duc, General Director of Dat Xanh Group, commented that The Privé being included in the list of properties allowed to be sold to foreigners shows that the project fully meets legal regulations. "This is an opportunity for us to reach more international experts and businessmen living and working in Ho Chi Minh City, contributing to improving the liquidity and position of luxury real estate in Vietnam on the regional map," Mr. Duc commented.

In addition, expanding access to The Privé for foreign customers will also promote the formation of a diverse, highly international residential community right in Thu Thiem, the new economic and financial center of Ho Chi Minh City.

The general director of a company implementing a project in the old District 8 area also believes that expanding projects that are allowed to sell houses to foreign organizations and individuals will have a positive impact on the apartment market. This group of customers mostly has financial potential, as well as advantages in modern, energy-saving and environmentally friendly design trends. Thanks to that, the supply of housing products becomes more diverse, creating competition, bringing more choices for buyers.

In addition, opening the door for foreigners to own houses also helps to solve the housing needs of experts, investors and international labor force who are choosing Vietnam as a destination, while adding a significant number of potential customers to the real estate market.

Attracting and retaining foreign human resources

Economist - Dr. Dinh The Hien believes that Ho Chi Minh City's expansion of the list of projects eligible for sale to foreigners is a good signal, not only for the real estate market but also to attract high-quality international human resources.

In the context that Ho Chi Minh City is attracting engineers, experts, and foreigners to work in the international financial center, the demand for housing is forecast to continue to increase sharply. Having more suitable projects will contribute to retaining this force, increasing the competitiveness of Ho Chi Minh City as a destination, when many other cities are also attracting, "rolling out the red carpet" to invite foreigners, experts, and high-quality engineers to work and live.

"In developed countries, foreign ownership of real estate is common and Vietnam is also loosening this regulation. The recently published survey "City Pulse 2025 - The Magnetic City" by Gensler shows that Ho Chi Minh City is ranked 2nd in terms of its ability to retain international residents, surpassing many large cities such as Singapore, Sydney - Australia or Berlin - Germany. This result also shows that Ho Chi Minh City is not only a destination for work and tourism but also a place worth living, creating long-term attachment. Thus, creating more conditions for foreigners to own houses in specific projects is reasonable" - Dr. Dinh The Hien commented.

Supporting the decision to expand the real estate project allowing foreigners to own houses in Ho Chi Minh City, economic expert - Dr. Huynh Trung Minh suggested that it is possible to regulate or encourage the purchase of houses in the middle and high-end segments. Because, if the target that the city wants to attract to work and live is a team of high-quality experts and engineers, their income will be high and they will have the conditions to buy houses in the high-end segment.

"If foreigners are allowed to buy houses in affordable projects and affordable commercial housing in the context of current high real estate prices, it may reduce the opportunity for low-income people to own houses. In fact, in countries like the US, they have policies to encourage foreigners to buy houses, settle down or issue long-term residence cards in remote, suburban or sparsely populated areas to disperse the population" - Dr. Huynh Trung Minh cited.

According to Dr. Pham Viet Thuan, Director of the Institute of Natural Resources and Environment, allowing foreigners to buy houses in projects outside of defense and security areas is a trend in line with international practice. However, there needs to be regional orientation and clear criteria to avoid the situation of foreigners owning scattered houses, affecting the culture and security of the community.

Mr. Thuan suggested that Ho Chi Minh City could take advantage of the National Assembly 's Resolution 98 on special mechanisms to build specialized areas for foreigners, such as in District 2, District 7, Cu Chi District (old) or areas associated with Ring Roads 2, 3, 4. Focusing on developing this model not only helps with more effective management but also opens up a sustainable source of revenue for the city, because buyers are mainly high-income groups, willing to spend a lot on real estate.

"If the policy is soon adjusted in the direction of synchronization between the Land Law and the Housing Law, Ho Chi Minh City will have new motivation to attract foreign capital, diversify supply sources, and exploit the housing segment for experts and foreigners more effectively. This can also become an important boost in the integration process of the Vietnamese real estate market," the expert emphasized.

Source: https://nld.com.vn/nguoi-nuoc-ngoai-rong-cua-so-huu-nha-o-196250821211809798.htm