Understanding what foreigners are allowed to buy is only half of the issue. The other half is understanding the restrictions that apply once eligibility is established, because these limitations directly affect investment value, exit strategy, and long-term planning.

1. The 30% cap and what happens when the ceiling is reached

In an apartment building, the total number of units owned by foreign organizations and individuals must not exceed 30%. For individual houses, including villas and townhouses, the limit is 250 houses within an area with a population size equivalent to a ward-level administrative unit.

One reality that many buyers often overlook is this: once a building has reached the 30% cap, foreigners cannot purchase any additional units in that building — even if supply remains available on the market.

In high-demand projects in Ho Chi Minh City and Hanoi, this quota can be filled very quickly. Therefore, checking the quota status before signing a contract is essential.

2. The 50-year term — and the reality of extension

The ownership term for foreign individuals is limited to a maximum of 50 years for each grant. This term begins from the date the Certificate is issued and may be extended once for a period not exceeding 50 years if there is a need. The housing ownership term must be clearly stated in the Certificate.

A 50-year asset with uncertain extension prospects is an entirely different type of asset from long-term ownership. This must be factored into the pricing strategy and exit plan from the outset.

3. No land-use rights — the core limitation

This is the fundamental restriction: foreigners may own houses or residential structures built on land, but they may not own land-use rights in Vietnam.

This means the long-term value of the property is primarily tied to the value of the structure — which tends to depreciate over time — rather than the value of the land, which often appreciates significantly in Vietnam’s major cities.

4. Only eligible projects qualify

Foreigners are only permitted to purchase real estate in approved commercial housing projects.

Ineligible asset types include:

• Residential property transactions between individuals

• Agricultural land

• Vacant land without any structure

• Real estate located in areas restricted for national defense or security reasons

The responsibility for verification lies with the buyer — and in practice, sellers or brokers do not always provide complete information.

5. Restrictions on transfer, lease, and inheritance

Real estate owned by foreigners may be transferred, leased, or inherited — but each of these transactions must comply with specific legal conditions:

• If the property is to be transferred to another foreigner, it may only be transferred to a foreign individual who satisfies the statutory eligibility requirements.

• The property may only be leased for purposes not prohibited by law. However, before leasing out the property, the owner must submit written notice of the lease to the competent Vietnamese authority.

• For foreign individuals, housing may be owned in accordance with the agreement in the purchase, lease-purchase, gift, or inheritance transaction, but for no more than 50 years from the date the Certificate is issued. The term may be extended once for a period not exceeding 50 years if there is a need, and the housing ownership term must be clearly stated in the Certificate.

Conclusion

To invest effectively, it is necessary to understand this framework precisely and operate within it — not merely understand it in general terms.

Source

• Báo Dân trí — “Người nước ngoài được sở hữu bao nhiêu nhà ở, chung cư tại Việt Nam?”