Real estate in Vietnam

Vietnam is a modern, democratic Asian state located on the Indochina Peninsula.

The country shares borders and has developed relations with China, Cambodia, and Laos.

The country's permanent population has exceeded 100,000,000 residents, many of whom live in rural areas.

Urbanization in the country is 30%, which is relatively low by modern standards.

In recent years, the country has seen a significant influx of residents moving from rural areas to cities, creating increased demand for residential and commercial real estate.

However, real estate supply has not kept pace with this growing demand, driving up property prices in Vietnam's major cities.

Vietnam's Attractiveness for Real Estate Investors

Another factor is the opening of Vietnamese real estate to foreign buyers since 2015. Despite a 30% limit on the number of apartments that foreign investors can purchase in a given residential complex, foreign investment is also driving up property prices, particularly in the country's resort cities, including Hanoi, Hoi An, Ho Chi Minh City, Nha Trang, Da Nang, Mui Ne, Da Lat, and several others.

Construction Companies in Vietnam

Several hundred Vietnamese and international construction companies of varying sizes operate in the country, specializing in various types of buildings. Vietnam has a well-developed construction industry, both in high-rise residential complexes and individual residential construction, with numerous houses, villas, and townhouses with private plots built annually. A significant amount of commercial real estate and essential urban infrastructure has been built in the country in recent decades. Some Vietnamese real estate developers have dozens of large residential and commercial projects in their portfolios, defining the landscape of Vietnamese cities.

Vietnam Real Estate Market

Vietnam's real estate market is quite developed, but it is still not open and transparent enough to compete, for example, with those of developed Western European countries. The involvement of a professional real estate agent in a property purchase is not mandatory under Vietnamese law, but their role can be key. A real estate agent not only ensures a high-quality selection of properties based on the buyer's request but also ensures the legal integrity and transparency of the property purchase, which is especially important after resale after several years of ownership or when engaging in short-term or long-term rentals. There are currently tens of thousands of licensed real estate agents operating in Vietnam's real estate market, as well as over a hundred thousand unlicensed real estate agents. Professional real estate agents who excel at their jobs typically have been in the market for many years, have numerous confirmed property sales, and operate openly and honestly.

How to Choose a Real Estate Developer in Vietnam

Important factors to consider when choosing a real estate developer:

• Compliance with construction deadlines;
• Quality of construction and finishing of the properties;
• Resolving problems and complaints arising from real estate buyers;
• Verify that all property documents are properly prepared;
• Experience in the market;
• The company's reputation among buyers and counterparties;
• Additional services: check whether the developer provides assistance with obtaining a mortgage and paperwork.

How to Buy Real Estate in Vietnam

Purchasing real estate in Vietnam is subject to a specific procedure.

Before purchasing real estate directly from the developer, it is necessary to verify the construction license, the building permit for the given location, and the development plan approved by the local administration. Purchasing resale real estate requires verification of the property documents. It is necessary to verify the seller's ownership of the property and obtain confirmation that they are not bankrupt. It's important to verify the owner's outstanding utility bills and any outstanding debts to the management company. It's also important to check for any restrictions on purchasing this type of property.

If the desired property has no document issues, a reservation agreement is signed between the seller and buyer, along with a security deposit of up to $10,000. In most cases, the reservation is for up to 15 days. The deposit can be made in cash or by bank transfer.

In Vietnam, there are a number of documents required for the sale and purchase of real estate. These include identification documents of both the seller and buyer, proof of marital status, a certificate of ownership of the residential property, and a land use title certificate.

A residential property purchase and sale agreement in Vietnam must be notarized. The document is drawn up in Vietnamese, and a translator is required for transactions with foreigners. A real estate purchase agreement is drawn up in four copies: two copies for each party, and one copy each for the tax office and the real estate registration agency.

After signing the agreement, the parties have ten days to submit an application to amend the land use certificate, as well as a tax return for the required taxes. When conducting a real estate transaction from a developer, the construction company registers the transfer of ownership with the regional real estate department and the tax office itself. Obtaining a title deed takes four to twelve months.

Foreign citizens are eligible for mortgage loans from Vietnamese banks. The loan amount is typically up to 70% of the total property value. Proof of income is a mandatory document for obtaining a mortgage.

Real Estate Agencies in Vietnam

Advantages of working with large and small real estate agencies:

1. Large real estate agencies often have experience working with international capital;
2. Large real estate agencies offer a wide range of services (from property selection to legal support);
3. Large real estate agencies are highly professional and reliable.

Small real estate agencies:

1. Offer more favorable terms for foreign investors;
2. Provide a personalized approach and flexibility in transaction terms.

Taxes and Payments When Buying Real Estate in Vietnam

Purchasing real estate in Vietnam is subject to the following taxes and mandatory payments. The purchase of new housing from a developer includes 10% VAT, as well as a sinking fund of 2% of the property value. The registration fee is 0.5% of the property value, and the administrative fee for preparing the title deed is approximately $100. The notary fee for contract execution is $43 + 0.06% for property values ​​over $47,000.

Vietnam Real Estate Developers

The following companies are among the major developers in Vietnam.

Delta Construction Company is a Vietnamese real estate developer founded in 1993. It specializes in the construction of residential properties, hotels, and urban infrastructure. The company employs over 2,500 engineers and architects. The company has participated in projects such as Keangnam Hanoi Landmark, Lotte Center Hanoi, Bitexco Financial Tower, Royal City, and Vincom Center.

Newtecons, a construction company, has been operating in Vietnam since 2003. The developer specializes in residential complexes. Its notable projects include Vinhomes Central Park 3 and Big C Ha Long. The company employs over 1,000 specialists and has completed over 150 projects.

Our website features ratings and reviews of Vietnamese developers and real estate agencies, left by real estate buyers. Reading these reviews will help you form your own opinion about the reliability and quality of developers and real estate agencies, as well as make an informed decision about purchasing specific properties from developers and working with real estate agencies.

To make the right choice when buying real estate, and the investment process is safe and effective, check out the rating of real estate developers in Vietnam and reviews of real estate agencies in Vietnam. This will help you get a complete picture of the market and choose a reliable partner.