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Vietnam plans to allow expatriates to buy and sell houses to
attract foreign investment to the sector, real estate dealers said
Monday.
The Ministry of Construction plan applies to foreigners who will
stay in Vietnam for a year. They will be allowed to buy and own one
house per person over 50 years.
Many of the expatriates are executives in foreign-invested
companies.
"The new rule," said Nguyen Xuan Dao, chief executive at the
Hanoi-based developer Vietnam Property, "will not only attract more
investment in quality property projects but also boost demand from
foreigners and create more opportunities for locals to trade in
real estate."
The proposal allows foreign owners to sell without restrictions
and use the property as collateral for bank loans in Vietnam but
forbids them from renting the home.
In Vietnam, the state owns the land but gives infinite freehold
to its citizens.
Property markets are on the rise across Asia, fueled by
cash-rich investors looking for higher returns, the booming
economies of China and India and the emergence of Japan from over a
decade of economic stagnation.
Since India eased rules on investment in the construction
sector, foreign property funds have flocked in, helping to double
property prices in major cities since 2005.
Home prices in Singapore have seen their biggest gains in over
seven years, led by strong buying of luxury properties by
foreigners.
About a quarter of the 81,000 expatriates currently living in
Vietnam would be eligible to buy houses, said the director of the
Housing Management Administration, Nguyen Manh Ha.
"House ownership will help expatriates cut living cost
significantly," Ha was quoted as saying by state media Monday.
Last year, the consulting firm Mercer ranked Hanoi the world's
32nd most expensive city for expatriates, mainly for high rents
that could go up to $3,000 per month for a three-bedroom serviced
apartment.
Real estate prices, especially condominiums in big cities like
Ho Chi Minh City, have gone up about 50 percent in the past year
due to limited supply, with most new projects sold before they are
built.
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