Vietnam - Foreigners allowed to buy apartments

HANOI: Vietnam has passed a law allowing certain categories of foreigners to buy apartments beginning in 2009, the first time the communist country has allowed non-citizens to own real estate.

The National Assembly approved the new law on Thursday, with 88% of deputies voting for it, the government said on its official website yesterday..

Foreigners eligible under the law can only buy apartments in developments approved for foreign residency, not houses or land. Ownership will be for a term of 50 years, by which time the foreign owners must sell or transfer the property.

Real estate developers said the law was likely to give a much needed boost to Vietnam’s property markets, which have softened recently after explosive growth in 2007.

‘‘It could have a 20 to 30% impact in terms of rising prices,’’ said William Badger, a manager at Leonidas Management, a subsidiary of the Hong Kongbased real estate company Tung Shing Group.

‘‘Similar laws have been passed in China, Thailand and Malaysia,’’ said Misha Chellam, assistant to the chairman of Hanoi-based developer Vietnam Land. ‘‘Each time in those countries when a law like this was passed, it significantly boosted demand.’’

Those eligible to buy apartments include foreign firms purchasing housing for staff, and four categories of individuals. These include foreigners working at Vietnamese firms, foreigners married to Vietnamese, foreigners with special skills needed by Vietnam’s economy, and foreigners who have been awarded medals or other honours by the government.

It was not immediately clear how much the new law would differ from current law allowing foreigners to obtain 50-year leases on property in Vietnam. Normally in Vietnam, new laws are followed by decrees and circulars clarifying how the law will be implemented, and developers expect that the move from lease to ownership will grant foreigners additional security.

$220 million Halong Bay (Vietnam)

The $220 million Halong Star, the first project for Limitless in South East Asia broke ground at Halong Bay near Hanoi, Vietnam.

The event was marked by a soil turning ceremony at the project's 125 hectare site, attended by dignitaries from the UAE and Vietnam, including Nguyen Quang Khai, Vietnam Ambassador to UAE and political leaders of the country's Quang Ninh province.

Halong Star, announced in September this year, is a joint venture between Limitless, Phuong Hung Joint Stock Company and International Property Investment Partners LLC. The project will include the area's first five-star hotel, conference facilities, high-end residential units and recreational, cultural and education amenities, all with extensive views of Halong Bay - a UNESCO-sanctioned world heritage site.

Speaking in Halong Bay, Saeed Ahmed Saeed, CEO of Limitless, said: "Halong Star is our first international project to break ground. The event marks the beginning of a development that will fulfil Halong Bay's massive demand for high-end tourist and residential facilities, especially those with views. I am honoured that Limitless is to play such a major role in enhancing this beautiful part of the world."

The start of the work on Halong Star comes just two days after Limitless marked the official launch of its regional operations for SE Asia, based out of Singapore.

Saeed Ahmed Saeed said: "Limitless was established with the aim of capitalising on Dubai's real estate experience by developing distinctive projects around the world. SE Asia is a strong market for us: Halong Star is one of many Limitless projects in the pipeline for the region."

Limitless will engage well-known architects to draw on traditional Vietnamese, French Colonial and modern Asian design characteristics for the hotel and residential elements of Halong Star. In addition, grounds will be landscaped, featuring lakes and tropical gardens to preserve and enhance the natural beauty of Halong Bay.

The project is expected to be completed over five years.