Housing for overseas Vietnamese: open policy, closed market

VNRE - Decree 71/2010/ND-CP has opened up opportunities for overseas Vietnamese to own house, but the housing market is expected no major change in the short term.

All overseas Vietnamese have right to buy house. This is one of the important contents of the Decree 71/2010/ND-CP of the Government has come into effect from August 8th 2010 and guided by the Circular issued on September 9th 2010. While the real estate market is groomy, the Government's dynamic is expected to bring a new vatality to the market.

Opportunities for overseas Vietnamese to own house

The Circular guiding the implementation of overseas Vietnamese to buy houses under Decree 71, two overseas Vietnamese objectd will have right to to buy house in Vietnam, including the purchase unlimited and only buy a home. Accordingly, the object is not limited to buying overseas Vietnamese who are also hold citizenship in Vietnam, the Vietnamese origin directly invest in Vietnam, scientists, culturist, people have special skills that Vietnam' agencies and organizations need and are working in Vietnam, people has husband or wife is Vietnam citizen who live in the country.

Vietnam origin are not under the subjects mentioned above, but have been granted visa-free and allowed to reside in Vietnam for 3 months or more will have right to owns a private house or apartment in Vietnam.

According to report of the Ministry of Construction, about 70% of nearly 4 million Vietnamese in foreign countries retain Vietnamese citizenship. This means the most of Vietnam expatriates will be bought and owned house in Vietnam with an unlimited number as people in the country.

In addition, according to the Circular guiding the implementation of Decree 71, overseas Vietnamese only own house or land in the project by the real estate development unit sales. For the land of individual, private, agricultural land (non-functional to reside), overseas compatiots are not allowed to own or buy. However, if the land is enclosed housing, certificate papers for land use rights and assets attached to land, overseas Vietnamese are still property.

Legalized house rather than buying

Mr.Tran Minh Hoang, Chairman of the Board - Vinaland Real Estate Company, said that this regulations the real estate market will be stimulated again after a long time frozen. "In 2009, economic decline, making remittances to Vietnam decreased. However, this amount is nearly US $7 billion. It shows that the financial capacity of overseas Vietnamese is very high. This will be an important capital channel for real estate market, "he said.

However, in remittances annually term, mostly used to buy a home (due to a relative's name). That's why Mr.Le Hoang Chau, Chairman of HCMC Real Estate Association, said that overseas will take advantage of the opening of the Decree 71 to legalize the property previously purchased rather than buying new house. Thus, the housing market will remain unchanged in the short term.

Mr.Ngo Duong Hoang Thao, a Vietnamese residents in The U.S, General Director of a big company in Vietnam, also said that these will have trend on the overseas Vietnamese to buy house, but in immediate, they will legalize the house by the relative's name rather than buying a new home. He also said, he will soon legalize two houses bought in Vietnam since 2002.

On the other hand, many overseas Vietnamese are afraid of home prices in Vietnam are too high, while the economic situation is not through difficult yet in the country where they are living. At the seminar guide and answers about property, land use and housing for overseas Vietnamese and their relatives recently in Vietnam, Mrs.Nguyen Thi Vui, a Vietnamese residents in Canadian, said she plans to buy a house in Vietnam and was introduced a 150m2 apartment in Binh Thanh district - HCM City with price more than US $350,000.

"Living conditions, activities and transportation infrastructure in Toronto - Canada are higher than Hochiminh City, but no such price. Housing in Vietnam are too expensive!", Mrs.Vui said. High price is one of the reasons makes overseas Vietnamese haven't decided to buy houses at this time.

According to Mr.Tran Ngoc Nhat, Former head of marketing department of Novaland Real Estate Company, overseas Vietnamese often returns Vietnam during the Western New Year and Lunar New Year. On this occasion, they will review the information if they want to buy house in Vietnam. Thus, at least to wait through the Lunar New to see the impact of Decree 71 for the Vietnam real estate market.

Reported by Dang Hung/ NCDT