Home ownership law changes for foreigners to boost property market Foreigners can buy houses in Vietnam under a new law that takes effect July 1, a move greeted as positive news for the local real estate market.   Home ownership for foreigners to lift property market The regulation is expected to improve investor confidence in Vietnam’s property market. But the impact on the market will depend on yet-to-be issued guidelines on the law. Le Hoang Chau, the chairman of HCM City Real Estate Association (HoREA) said, “The law will be a breath of fresh air for the property market." Chau said around 30,000 high-ranking foreign specialists and directors are working and living in HCM City. In addition, a lot of foreign peoples are working and living around the country, including 80,000 from South Korea, 8,000 from Japan and 1,200 from Germany. Such people have been living in Vietnam for years and that they can now buy their own homes should warm up the property market in cities and provinces with several industrial parks like HCM City, Dong Nai and Binh Duong Provinces. Nguyen Nam Hien, the general director of Hung Thinh Land Co, said, “It’s not likely that prices of property would sharply increase as a result of the law. But the regulation would reinforce investor confidence.” The Law on Housing stipulates that foreign individuals or organisations are allowed to own a collective maximum of 250 houses in a ward or a collective maximum of 30 percent of apartments in an apartment building. Chau said relevant authorities should issue detailed guidance on money transactions for home buying by foreigners as well as places where foreigners cannot buy houses, such as areas restricted for national security. Su Ngoc Khuong, the investment director of Savills Vietnam Co, said previously Vietnam has allowed foreigners to buy homes, but only 200 transactions have been conducted. “The most important thing is whether relevant authorities are ready to provide supporting information and guidance to comfort investors and attract more investment in the property market,” Khuong noted. NLD