Full steam ahead in Vietnam! Real estate prices have been rising robustly in recent years, propelled by Vietnam's recovery from the housing bust of 2009-2013 and by a booming economy. Sales have been greatly assisted by the Housing Law and Law on Real Estate Business (effective July 1, 2015), by the law on Sell and Transfer of Real Properties (subsequently fleshed out by Decree No 99 (effective December 10, 2015) and by Circular 19 (effective August 15, 2016).
The average asking price of HCMC villas and townhouses rose by 13.6% y-o-y in Q4 2017. In the secondary market, asking prices of villas and townhouses went up by 4.5% y-o-y.rose by 44% y-o-y in Q4 2017.
Villas and townhouse sales in HCMC increased by 25% both from the previous quarter and from the same quarter last year
In Hanoi apartment prices fell during the year to Q4 2017. Primary market apartment prices fell by 2.5% during the year to Q4 2017 Secondary market apartment prices fell by 6.6% y-o-y .
A continuous growth of supply in Hanoi, as well as a shift in buyer interest to mid-end and affordable segments, in part, might have contributed to the softening of property prices in the capital.
Foreigners are not allowed to own land. In fact, even citizens are not allowed to own land. In Vietnam, land is theoretically collectively owned by the people, but regulated by the State.
Foreigners who are residents in Vietnam are permitted to purchase dwelling houses. They can own a house but not the land on which it is built. They have the option to lease the land from the State.
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