Housing

Foreigners increase buying houses in Hanoi

TH (according to VnExpress) January 27, 2025 18:50

Last year, foreigners bought over 2,800 apartments in Hanoi, nearly twice as many as in the 2018-2022 period thanks to the new law, according to VARS.

nguoi-nuoc-ngoai-mua-nha.jpg
Luxury apartment projects in the West of Hanoi

This information was stated by the Vietnam Association of Realtors (VARS) in a recent newsletter. This unit cited data from the Ministry of Construction showing that from 2015 to the end of 2023, more than 3,000 foreigners bought houses in Vietnam. Of which, Hanoi accounted for more than half, with 1,765 houses in the period 2018 - 2022.

In the first half of 2024, VARS said foreigners bought more than 1,000 apartments in Hanoi. Then in the last quarter of the year, the Department of Construction allowed 7 more apartment projects with about 3,000 apartments to be sold to foreigners, mainly in the high-end segment in urban areas. "These projects also quickly consumed more than 60% of the apartments allowed to be sold to foreigners, at prices 10% higher than Vietnamese buyers," VARS said.

Thus, more than 2,800 apartments in the capital were sold to foreigners last year. The brokerage association believes that the trend of foreigners owning houses in Vietnam, especially in Hanoi, will continue to grow. "This is a positive signal for the real estate market, contributing to absorbing a relatively large amount of high-end, luxury products that are still "in stock" on the market," VARS assessed.

This forecast was made by VARS in the context of the Housing Law 2023 (effective from August 1, 2024) creating more favorable conditions for foreigners to own real estate in Vietnam. Accordingly, the law stipulates more clearly the number of foreigners allowed to own houses in a project. For an apartment project, they are not allowed to own more than 30% of the total number of apartments, and for townhouses, a maximum of 250 units in a ward-level administrative unit.

Along with that, the trend of foreign workers coming to Vietnam to work is increasing, especially positions such as managers, executives, experts and technical workers working in the North. This group often has a need for housing in the capital.

However, this unit noted that investors need to research the market to determine which country the target customer group comes from and their ability to pay in order to implement projects that suit their needs.
Along with that, businesses need to arrange a separate department that is fluent in foreign languages ​​and understands legal regulations to support foreign customers.

In a report last year, market research consultancy CBRE Vietnam also said that since the foreign home ownership policy was relaxed in 2015, customers from China, Hong Kong, Taiwan and South Korea have become major investor groups. This group accounts for about 75% of the Vietnamese housing market thanks to geographical proximity.

This wave is also fueled by the presence of foreign investors in Vietnam. The Vietnamese housing market is also assessed to have strong potential for price increases compared to their home countries - places that have experienced similar price adjustments in the past.

However, CBRE believes that the investment purpose of most foreigners buying real estate in Vietnam is to wait for prices to increase to make a profit. A small number will rent out their apartments as a temporary solution while waiting for the selling price to increase. "Not many foreigners, mainly those who plan to live long-term in Vietnam, buy houses for their own use," CBRE said.

TH (according to VnExpress)
(0) Comments
Latest News
Foreigners increase buying houses in Hanoi