VietNamNet Bridge - Real estate developers have complained about the regulation that limits foreign ownership to no more than 30 percent of apartments in one project and no more than 250 houses in one ward.

The limits are set by the 2014 amended Housing Law, which took effect on July 1.

Deputy director of Dat Lanh Real Estate Company, Nguyen Van Duc, said that he can find no reason to set up such limits.

“I’m sure in many residential quarters, the proportion of foreign residents exceed the limits, but the public order and building management are still very good,” he said.

According to Duc, 70 percent of the apartments at Thai An 2 apartment block, a project developed by Dat Lanh, have been sold or leased to foreigners, mostly from South Korea, while the total number foreign residents at Thai An 1, 2, 3 and 4 is higher than 250.

As such, one housing project in HCM City with four apartment blocks alone has foreign residents exceeding the limit set by the Housing Law.

Duc believes that the limits have also been broken in other residential quarters in HCM City, which is witnessing rapid urbanization.

An analyst agreed with Duc, saying that it was difficult to enforce the law in HCM City, where there are up to hundreds of thousands of residents in one ward and seven to 10 apartment projects.

Duc said foreigners tend to choose homes located in positions convenient for their travel and daily activities, and that form communities of foreigners. Phu My Hung new urban area is an example.

“The limits on proportion of houses foreigners can possess is contrary to the openness of the Housing Law,” Duc said, who called on state management agencies reconsider the restrictions.

Duc said that real estate firms should realize that there are many different groups of foreign customers, not just those who want to buy high-end properties. 

Some can afford houses worth millions of dollars, while others only have tens of thousands of dollars to buy small apartments in Vietnam. 

Therefore, it would be better to develop housing projects that suit different market segments, rather than focus on high-end products.

Chair of Nam Long Investment, Nguyen Xuan Quang, said it would target products of different classes.

Regarding foreign investments, Quang said there were still many problems which prevent overseas Vietnamese and foreign investors from pouring money into the market.

In 1990-2000, the policies on foreign ownership remained unclear. Though policies have become more open, many problems still exist. 

VNE