CBRE Vietnam’s newly released report on two decades of urban development in Vietnam cited statistics from the Ministry of Construction (MOC) as reporting that over 3,000 foreigners bought housing in Vietnam from 2015 to the third quarter of 2023.

The company said of every 10 foreigners who bought housing in Vietnam, nine chose to buy residential apartments. Of these, 60 percent bought apartments to sell later when apartment prices increase. Seventy-five percent of buyers were from developed Asian countries.

In 2015, the government removed barriers to pave the way for foreigners to buy and own real estate in Vietnam.

According to CBRE, after the policy on foreigners’ home ownership was loosened, clients from Asia, including China, Hong Kong (China), South Korea and Taiwan (China), became the major investors in the Vietnamese housing market.

Asian clients like Vietnam because of the short geographical distance and the presence of real estate firms from their home countries. Most foreigners bought real estate because they hoped prices would increase. The number of foreigners buying apartments to live in remains very modest.

According to CBRE, foreigners like high-end apartments in HCM City and Hanoi. They mostly eye projects located in advantageous positions with reasonable prices and great potential.

Analysts said with the newly released policies, Viet Kieu, or overseas Vietnamese, will have great opportunities to invest in real estate.

The 2024 Land Law, to take effect on January 1, 2025, has many changes, including expansion of Viet Kieu’s land-use rights.

Troy Griffiths, deputy director of Savills Vietnam, said big changes in the amended law will offer more investment opportunities to Viet Kieu buyers.

In the past, Viet Kieu bought houses, but the houses were in the names of their Vietnamese relatives, which was the reason behind many disputes. With the amended law, the disputes will be minimized.

Experts also believe that with the new laws information about investment opportunities will be more transparent, which will help attract more foreign direct investment (FDI) to the real estate sector.

Nguyen Le