Vietnam’s Ministry of Construction has submitted a draft amendment to the country’s housing law that, if passed, would restrict foreign individuals and organizations to owning apartments and prohibit their ownership of landed houses. The proposal is currently under review by the National Assembly as part of a broader update to national housing and real estate legislation.
The proposed change specifically targets the type of property foreigners are permitted to acquire. Under the draft law, foreign entities could continue to purchase or inherit condominium units within commercial housing projects. However, they would no longer be permitted to own “landed houses,” a category that includes properties such as villas and townhouses that are attached to a specific plot of land.
The Ministry of Construction has stated that the proposed revision aims to ensure consistency between the Law on Housing and the Law on Land, which stipulates that land is collectively owned by the people and managed by the state. Officials have also cited national security and defense as considerations for the proposed limitations.
Current regulations, established by the 2014 Law on Housing, marked a significant opening of Vietnam’s real estate market. The law permits foreigners with valid visas, along with foreign investment funds and branches of foreign banks, to purchase residential property. Ownership is granted on a 50-year leasehold basis, with the option for renewal. Existing rules also include caps, limiting foreign ownership to no more than 30% of the units in a single condominium building or 250 landed houses within one administrative ward.
The proposal has drawn responses from various sectors of the real estate market. Some industry groups have expressed concern that the change could impact foreign investment in Vietnam’s property sector. The Vietnam Association of Realtors (VARS) noted in a report that such a restriction could reduce the attractiveness of the high-end real estate market to foreign buyers, potentially affecting market liquidity.
Conversely, proponents of the amendment argue it is a necessary step to manage the real estate market and align legal frameworks. They maintain that the primary purpose is to create a clear and uniform legal basis for property ownership that is consistent with the country’s foundational land-use principles.
The draft amendment is one of several proposed changes to Vietnam’s real estate and housing laws being debated by the National Assembly. The legislative body will review the proposals before a final version is put to a vote. The outcome of these deliberations will determine the future legal framework for foreign property ownership in the country.
