East Saigon running out of apartments for sale to foreigners
Original Articles on: vnexpress.net
An ownership cap is preventing foreigners from buying high-end apartments in Saigon, especially its eastern part.
East Saigon running out of apartments for sale to foreigners.
Thien’s apartment was in a prime area with a view of the Saigon River in Ho Chi Minh City’s Thao Dien Ward, District 2.
He could have sold it for VND 5.5 billion ($236,000) to a foreign buyer,
But had to sell to a local investor for VND5 billion ($215,000) because the 30 percent cap of foreign ownership had already been reached.
Like Thien, Luong bought a high-end apartment on Ha Noi Highway, District 2, in 2017, and sold it to a foreigner early 2018.
The foreign ownership cap is reaching very fast consequently he needed months to find Vietnamese buyer for lower profits.
The amended Housing Law 2014 expanded foreigners’ rights to buy housing in Vietnam but stipulates a foreign ownership cap of 30 percent in each project.
Savills Vietnam director Matthew Powell said that:
Many apartment projects in HCMC reached the 30 percent foreign ownership limit since last year, certainly in expat dense areas.
Song Hai (an experienced real estate broker) said that:
Many foreigners find property in the East Saigon especially in Thao Dien ward, more attractive.
Nguyen Xuan Quang, Chairman of Nam Long Investment Joint Stock Company, said that;
The participation of individual foreign investors is a positive signal for the market because apartment sales were slowing;
“Foreign investors might see good market prospects here as returns from property in the city can be better compared to other countries,” he said.
Nguyen Loc Hanh, deputy general director of sales and marketing at Danh Khoi Real Estate Joint Stock Company (DKR), said that:
Only few apartment projects in the east Saigon have reached the foreign ownership limit, especially high-end projects preferred by foreigners.
Luxury apartments in the city are still much cheaper than in Hong Kong or Singapore, Hanh noted.
Alan Kan, committee member of the Hong Kong Business Association Vietnam (HKBAV) said that:
VnExpress International that Hong Kong property prices risen to unaffordable levels.
Probably many people are looking to invest in cheaper places like Vietnam and Thailand.
The conditions and legal procedures related to foreign ownership are certainly easier but need improving to attract more investors.
He agreed it was important to have ownership limits to ensure proper oversight and avoid negative impacts on the economy.
Vietnam could consider relaxing the regulations in certain areas to meet demand, especially in the luxury segment.
by Vu Le and Minh Huong