🏢 Growing Investor Involvement
- Since the 2015 Land Law amendment, which allowed foreign homeownership, demand has surged. Foreign buyers—especially from Singapore, Hong Kong, China, Taiwan, and South Korea—represent about 70% of foreign purchasers, mainly aged 35–45.
- In Ho Chi Minh City (HCMC) alone, over 3,000 premium units have been purchased by foreigners, mostly high-end apartments.
- In Hanoi, more than 2,800 apartments were bought by foreigners in 2024, doubling sales from 2018–2022.
📈 Market Dynamics & Motivations
- Rental yields of 6–7% in HCMC and Hanoi during 2015–19 attracted foreign investors.
- Vietnam’s economic stability, urban growth, and affordability (luxury HCMC apartments priced ~14% lower than Bangkok, ~50% lower than Singapore) add to its appeal.
- Many foreigners—like a British expat and a Hong Kong businessman—buy properties both for residence and investment, viewing them as long-term assets.
📜 Legal & Structural Reforms
- The 2015 Land Law allowed foreigners to own up to 30% of condo units in new projects.
- The 2023 Housing Law, effective August 1, 2024, permits foreigners to own homes for up to 50 years, with a one-time renewal available.
- This law has already spurred higher foreign participation in both HCMC and Hanoi, notably in luxury segments.
🧭 Broader Market Implications
- Foreign purchases help absorb unsold high-end inventory, contributing positively to the luxury housing market.
- Hanoi, for example, saw over 1,000 foreign-owned apartments in the first half of 2024, with prime properties selling at a 10% premium.
- CBRE ranks Vietnam as the second most attractive real estate market in APAC for foreign investment, trailing only India.
✅ Summary Table
| Aspect | Details |
| Foreign Buyers | 70% from Asia (Singapore, China, etc.), aged 35–45 |
| Key Cities | HCMC & Hanoi—3,000+ luxury units sold to foreigners |
| Investor Profiles | Investors and expatriates seeking returns and residence |
| Legal Framework | 30% cap per project, 50‑year ownership, renewals allowed |
| Market Impact | Boosts luxury segment absorption, strengthens premier real estate |
| Regional Ranking | 2nd most attractive APAC market after India |
