Vietnam real estate promises to be one of the most prominent industries in Southeast Asia

 

The Foreign Direct Investment (FDI) in Vietnam has witnessed the significant growth which brought the demand for property transaction up. With a strong GDP growth rate of 6-7% / year, through the effective monetary policies of the Government of Vietnam. The positive changes with the amendment of the law of buying or selling houses in Vietnam have been upgraded to better suit current needs. Especially, the presence of foreigners in Vietnam is the upward trend year by year. At the same time, they need to know about things related to the housing law whether it is a rented or a purchase to invest. 

 

This article will clearly distinguish what you need to know for renters and for buyers to assist you with the right information and to help you understand the proper procedures. According to Article 161 of the 2014 Housing Law, foreigners are allowed to own houses in Vietnam through two forms:

- Investing in housing construction under projects in Vietnam;

- Buy, rent purchase, receive as gifts, inherit commercial houses including apartments and separate houses in housing construction investment projects, except for areas of national defence and security according to regulations. Government regulations.

 

Consequently, foreigners are allowed to own apartments and separate houses in housing construction investment projects.

 

See more: Vietnam's Economic & Real Estate Market Information In 2019

 

Tenancy Rent

 

Apartments for rent are among the most popular real estate types among foreigners

 

Unlike the condition to buy a home, the rental procedure is much easier for everyone, both domestic and international citizens. Individual (foreigners), who lease a house must have the full civil capacity. They have to stand by themselves to sign contracts related to renting houses in accordance with the law of Vietnam. And must be subjects of housing ownership in Vietnam under the Housing law. It is not required to register permanent residence or temporary residence in the place where the house is traded. 

 

When you decide to rent a house to live in, you must keep the following in mind for your personal benefit:

- Having specific address and information, outside the security and defence areas;

- Located in a separate area (not sharing the same apartment or sharing the same door as another apartment)

- Ensuring an adequate supply of electricity, water, sanitation and other essential conditions, safety in structure and construction.

- Ensuring security and order conditions.

- Ensuring fire prevention and fighting (with certificates issued by the provincial/municipal Fire Department or district-level fire prevention and fighting police departments)

- There is no dispute over ownership, right to use.

 

Legal Specifications

 

Housing conditions for foreign organizations and individuals to rent houses in Vietnam are specified in Articles 131, 132 and 133 of the Housing Law as follows:

Foreign organizations and individuals are allowed to enter Vietnam for a period of 3 or more consecutive months and Vietnamese residing overseas may rent houses in Vietnam.

Houses in Vietnam for rent to overseas Vietnamese, foreign organizations and individuals must fully meet the following conditions:

- Having been granted a house ownership certificate;

- Must be individual houses or self-contained apartments;

- Quality assurance and safety for tenants;

- Ensuring electricity, water supply, environmental sanitation and other essential conditions;

- There is no dispute over ownership, right to use.

 

See more: Things you wish to know when buying the property in Vietnam as a foreigner

 

Where to rent apartments or houses in HCMC?

 

Specific guidance and advice will make buying your home easier

 

In the South, most ex-pats live and work in urban regions such as District 1, 2, and 7 (counting Thao Dien and Phu My Hung Villa/apartment zones) of HCMC and the encompassing regions like Binh Duong, Dong Nai, Ba Ria-Vung Tau.

Each region tends to be populated by outsiders from certain nations. For illustration, Korean, Chinese, Japanese, and Singaporean individuals frequently populate District 7 of HCMC, whereas numerous westerners from the UK, France, or the U.S. tend to float toward the isolated estates in District 1 and 2 of HCMC.

Lease expenses change drastically based on area. In HCMC in 2011, at the Saigon Pearl loft condominium (Binh Thanh Area), the month to month rental charge for a two-bedroom, outfitted flat was around US$1,300 per month, counting administration expenses and charges. At The House flat condominium (Binh Thanh Area), the most reduced rental cost is US$1,100 per month for a two-bedroom loft, barring the taken a toll of utilities.

The rental cost for houses in District 2 and District 7 ranges from US$1,500 to US$7,000 per month depending on the measure of the estate or flat. The region close Ben Thanh advertise (District 1) is favoured since it offers expansive 150-200 square meter estates and tall standard flats for almost US$3,000 per month.

 

Home Buying Guide

Compliance with real estate laws will help protect your own rights

 

Legal specifications

 

A remote individual is permitted to purchase and claim a condo in the event that he/she is: 

- Utilized as a supervisor by local endeavours, by remote put organizations working together in Vietnam, or on the off chance that he/she puts straightforwardly in Vietnam. 

- Adds to Vietnam and is conceded an award by the President of the Socialist Republic of Vietnam or is perceived by the Prime Minister; 

- Works in eco-social fields have at any rate a four-year certification, and has exceptional information or aptitudes required in Vietnam, and additionally 

- Weds a Vietnamese resident.

- Outside organizations and people contribute within the development of houses beneath ventures in Vietnam in agreement with the Housing Law and important laws. 

- Foreign-invested endeavours, branches, agent workplaces of outside undertakings, outside speculation stores and branches of outside banks working in Vietnam (called organizations).

- Foreigners are permitted to enter Vietnam. 

 

Foreigners can possess houses in Vietnam through the taking after two bunches of forms: 

- Contributing to lodging development beneath ventures in Vietnam; 

- Purchase, lease buy, get as endowments, acquire commercial lodging counting flats and isolated houses in lodging development speculation ventures, but for regions of national guard and security agreeing to controls of the Government regulations.

 

Note: 

 

- The frame of the house buy or rent implies that the tenant pays in progress to the lessor 20% of the esteem of the house, but for cases where the tenant is able to pay in development, the instalment might not surpass 50%; 

- The remaining payable sum might be calculated as a month to month lease to be paid to the lessor for a positive term; after the expiry of the house-purchase-house rent expiry and when the leftover portion of the house lease has been paid, the tenant may possess the house. 

- Therefore, outsider areas it was permitted to purchase, rent-purchase houses that are flats and partitioned houses in lodging development venture ventures, not to purchase them exterior this area.

 

What projects are valuable for foreigners to buy?

 

You may consider carefully and fully prepared before deciding to invest

 

According to real estate exchanges under the Vietnam Association of Real Estate Brokers, most of the high-end and extravagance ventures in HCMC as of late surrendered a solid number of outside guests, due to the request of individuals to purchase houses. The number of foreign buyers expanded whereas the rate was constrained so there was a circumstance of outsiders buying to contribute to renting or exchanging to each other.

Remarkably, projects "The Fantastic Manhattan" is a complex of buildings found at 2 fronts of Co Bac - Co Giang road within the centre of District 1, declared by the financial specialist at a cost of 6,000 USD / m2, went with by the Benefit - ostensible stopping, instalment plan is as it were 1.5% / month. Moreover, Vinhomes Golden River in District 1, most of the apartments have owners. Therefore, customers who have not had the opportunity to own an apartment here from the investor can still receive a "resident card" through the transfer. Transfer does not mean the price is always sky high, some apartments are still affordable, affordable "with money" to many customers.

There are high-class apartment projects in strategic locations such as Thao Dien area in District 2, Phu My Hung area in District 7 is increasing strongly, stimulating the cash flow of both customers and investors who want to buy accommodation.

In District 2, infrastructure projects are fully planned. Where a series of apartment projects, houses, luxury villas are being built, land prices range from 35 to 47 million / sqm. In Cat Lai, real estate also increased sharply, ranging from 35 to 40 million VND / sqm. On Dong Van Cong route, in a short time, it has increased to 57 million VND / sqm. Thanh My Loi area has increased to VND 70 million / sqm at the present time. Items such as Masteri Thao Dien high-class apartment building in District 2, Imperia apartment building, Lexington Residence or An Phu - An Khanh urban area.

Particularly in District 7, there is an important strategic position in the economy in the south of Saigon, attracting a lot of projects. Updating the progress of new projects in District 7 is in the process of completing and opening for sale. Some outstanding projects such as The Kenton Node, Saigon Peninsula, Vincity, additionally, Dat Xanh Group has built the Luxgarden project with two views of the Saigon River frontage, the selling price at this project is at VND 65 million / sqm.

 

See more: Property Law in Vietnam for Foreigners

  

How to buy property in Vietnam - things to notice

 

 

If you are finding a guide to set up a business in Vietnam, visit here: Setting Up A Business in Vietnam as A Foreigner

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I hope this article will help you in deciding your dream apartment when living in Ho Chi Minh city. If you need any help from local expertise with free searching services (the only landlord have to pay) feel free to contact us. Here is some listing for you:

Apartment for rent in District 2 (Thao Dien).

Apartment for rent in District 4.

Apartment for rent in Ho Chi Minh city.

Masteri Thao Dien for rent.