Draft decree sets foreign ownership limit at apartment buildings

The Ministry of Construction is gathering public opinions on a draft decree guiding the 2023 Housing Law, proposing imposition of a 30-percent cap on foreign ownership at apartment buildings.

As per the draft, foreign organizations and individuals might own a maximum of 30 percent of the total number of apartments of an apartment building. Such rate would also be applied to each block of apartment buildings with multiple blocks sharing the same base and mixed-use apartment buildings.

For individual houses, such as terraced houses, independent houses and villas, the number of houses to be owned by foreigners would be determined on the basis of the population equivalent to that of a ward which is set at 10,000 people.

Accordingly, in an area with a population of 10,000 people where exists only one housing development project, the foreign ownership limit would be kept at 10 percent of the total number of individual houses or 250 houses, whichever is greater.

Foreign ownership limit at apartment buildings
Draft decree sets foreign ownership limit at apartment buildings (Illustration)

In case there is more than one housing development project in an area with a population of 10,000 people, the limit of 10 percent would be applied to each project but the total number of houses owned by foreign entities at all projects must not exceed 250. Besides, in case the number of foreign-owned individual houses at housing development projects in an area has reached the law-prescribed limit, foreign entities would not be permitted to purchase and own individual houses at other projects in that area.

Noteworthily, foreign entities would not be allowed to own houses at projects in areas of national defense and security significance. These areas include critical areas for national defense and security assurance within provincial territories; border communes, border adjacent areas and islands; areas where exist military bases and armed forces; areas where exist headquarters or offices of State and Party agencies from the provincial level and above; and other areas specified by the Ministry of National Defense and Ministry of Public Security.

The draft also outlines required documents for foreign organizations or individuals to prove their eligibility to own houses in Vietnam.

Foreign organizations must possess an investment registration certificate or other documents issued by Vietnamese authorities to demonstrate that they are permitted to operate in Vietnam. These documents must be valid at the time such foreign organizations enter into transactions related to housing ownership.

Meanwhile, foreign individuals must produce valid foreign passports, along with written commitments stating their ineligibility for diplomatic privileges and immunities. They must also reside in Vietnam at the time of conducting housing ownership transactions and provide documents proving their compliance with the 2023 Housing Law regarding the acquisition of properties.


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