Draft Housing Law would limit foreign home ownership in Vietnam to apartments

Vietnam is working on an amended Law on Housing that would confine foreign home ownership to apartments. Under the draft, foreigners would no longer be able to own landed houses. The change is a proposal and is not yet in force.

What the draft says

The Ministry of Construction says the revision follows Communist Party Resolution 21-NQ/TW, issued on July 28. The resolution aims to prevent land privatization and to limit the transfer of land-use rights to foreigners, with an exception for overseas Vietnamese.

As described in the report, foreigners could:

• Buy, or lease-purchase, commercial apartments from developers
• Receive apartments as gifts or through inheritance
• Own no more than 30% of the apartments in any one condominium building

Other limits remain. Ownership is not allowed in areas that need protection for national defense. Individual ownership lasts up to 50 years, and it can be extended once for another 50 years. Foreigners married to Vietnamese citizens would keep the same ownership rights as Vietnamese citizens.

Existing owners

According to the reporting, foreigners who already hold valid ownership certificates would keep full protection of their property rights. That includes transferring, gifting, mortgaging and inheriting the property.

Scale of foreign ownership

The Ministry of Construction estimates that foreign organizations and individuals own more than 6,000 homes in Vietnam. Of these, 1,519 were acquired after the 2023 Law on Housing took effect.

Expert views

A lawyer from the Hanoi Bar Association suggested a compromise: allow foreigners to own houses without acquiring land-use rights. A vice chairman of an HCM City association said the effect on the market would be limited, because few foreigners currently own landed houses.

What it means for residents

This is still a draft, so current rules apply for now. If it passes as written, foreign buyers in Ho Chi Minh City would be limited to apartments. Existing owners would not lose their rights. Anyone planning to buy a house should follow how the draft changes before the law is finalized.

Source: Vietnam News.