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Hanoi announces eight housing projects available for foreign owners

Foreigners can buy and own a maximum of 30% of the total number of apartments in a building, according to the draft amendment to Vietnam's Housing Law.

The Hanoi Department of Construction has announced eight housing projects are now available for foreign purchase and ownership.

View from the outside of Sunshine Golden River, a housing project developed by Sunshine Group is made available for foreign purchase and ownership. Photo: The Hanoi Times

The eight projects are located in the districts of Tay Ho, Long Bien, Bac Tu Liem, Nam Tu Liem, and Hoang Mai, four of which were developed by Sunshine Group.

Foreign ownership in local housing projects is among the major topics discussed during the fourth session of the 15th National Assembly, which run from October 20 to November 15.

The Ministry of Construction has submitted to the National Assembly a bill to amend the Vietnam Housing Law that contemplates allowing foreigners to buy and own a maximum of 30% of the total number of apartments in a building.

In the event that the size of an urban project is equal to that of a ward (5.5 km2), foreigners may purchase and own a maximum of 10% of the homes in the area, and the total number of homes owned by them may not exceed 250.

Foreigners are prohibited from purchasing houses and apartments in military or police land.

The announcement of eight housing projects available for foreign ownership will increase the housing supply for expats in Vietnam, Le Van Hoi, director of May Way Law Firm, told The Hanoi Times.

"Property developers may improve the progress of construction and quality of relevant services to attract foreign buyers and expand the lists of customers," he said.

"The latest announcement can boost Hanoi's real estate market, which could fall into distress due to recent monetary policies."

Authorities should limit the availability of land and the number of houses and apartments for foreign ownership, he said.

"The administration of Vietnamese and local organizations differs from that of foreigners. Therefore, such limits will ensure social security in areas where Vietnamese and foreigners share living conditions," Hoi said.

What really matters is to increase housing projects available for foreign ownership, Hoi added.

"The number of housing projects available for purchase and ownership by foreigners has remained below market expectations," he said.

In 2018-2021, Hanoi announced 67 housing projects available for foreign purchases.

According to the Hanoi People's Committee, the capital has nearly 300 housing and urban planning projects completed. In addition, more than 200 projects are pending approval by the city.