Main house developer Vinhomes authorized to promote 250 residences to foreigners

Vinhomes, a major housing developer, has received approval to sell 250 apartments in its Vinhomes Ocean Park 2 and Vinhomes Ocean Park 3 urban area projects, located in the northern Vietnam province of Hung Yen, to foreigners.

Vinhomes is a subsidiary of Vingroup, Vietnam’s largest private company by market capitalization.

Authorities of Hung Yen province explained that the houses were located in an area without any issues related to defense and security, so foreigners and foreign organizations could own them for residential purposes

Foreign organizations and individuals can own no more than 30% of all apartments in the projects per the law, the authorities stressed. They are also forbidden from buying the properties to resell them, the Hung Yen Department of Construction stressed.

The department added that the sales to foreigners require specific approvals from the authorities. The houses must be located at least 500 meters away from defense-security sensitive areas, it clarified.

In June, the National Assembly, Vietnam’s parliament, passed a law on amendments and supplements to the 2024 Land Law, the 2023 Law on Housing, the 2023 Law on Real Estate Business and the 2024 Law on Credit Institutions.

The amended laws will greatly influence Vietnam’s real estate market when they come into force on August 1, five months ahead of schedule, experts said.

With the updated legal framework, foreigners can own houses in Vietnam for 50 years and their ownership licenses can be extended once for another 50 years.

Vinhomes targets after-tax profits of VND35 trillion ($1.38 billion) this year, up 4.4% year-on-year, given more positive signals from the local real estate market.

Significant revenue addition was expected from the Vinhomes Ocean Park 2 & 3 projects in Hanoi, the Vinhomes Royal Island in Hai Phong and other projects, said chief account Le Tien Cong.