Real estate companies have launched sale programs to attract foreign buyers as the revised Housing Law with effect from July 1 eases restrictions on foreign property ownership in Vietnam.

Novaland Group has launched a sale of 100 condos at its four projects under construction with overseas Vietnamese and foreigners being its target clients. These projects are The Sun Avenue, The Botanica, Lucky Palace and Sunrise City View.

Vinhomes Real Estate Trading and Management Co. Ltd., CBRE Vietnam and 26 property agents held ceremonies to introduce Vinhomes Central Park project to foreign clients in Hanoi City and HCMC. According to Vinhomes, customers registered to buy 112 condos at these events.

City Garden announced earlier this month that it had signed a contract to sell an apartment to a foreign couple.

Other large property firms in HCMC have also prepared products for sale to foreign clients.

Phu Long Real Estate Joint Stock Co. is about to introduce a new high-class apartment project similar to Dragon Hill at Dragon City in Nha Be District. With the new project, the firm targets foreign clients as 40% of Dragon Hill residents are expatriates.

Him Lam Trading Corp. (Him Lam Land) has been training staff to give consultancy to and prepare contracts for foreigners.

Ngo Quang Phuc, deputy general director at Him Lam Land, expects the new law will help the enterprise reach out to more foreign homebuyers.

However, many enterprises are concerned about the lack of guiding documents for home transactions with foreign involvement.

Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), said foreign homebuyers are required to pay via banks. However, the central bank has yet to issue guidelines on this matter.

Besides, as per the 2014 Housing Law, foreign individuals and organizations are not allowed to own houses in the areas where foreigners are banned from residing and traveling due to defense and security matters. But the ministries of national defense and security have yet to clarify restricted or prohibited areas.

The new law allows foreigners to extend their home title by another 50 years in line with applicable laws, after the first 50-year period ends. However, the duration should be extended to 70 years as in many developed countries, Chau suggested.

B. Brader, a Briton who is leasing a home in HCMC, said he wants to a buy a high-class apartment in District 2 or 7 but is concerned about such a short duration of ownership and trading procedures.

Duong Thuy Dung, research and consulting services associate director at CBRE Vietnam, said the new law would not bring immediate business results as foreign homebuyers would need time to weigh before making a decision.

SGT