Vietnam, a rapidly developing country with a rich cultural heritage, has become an attractive destination for investors and homeowners alike. Its real estate market offers a variety of property types to cater to different needs and preferences. Whether you’re looking to immerse yourself in the heart of a major city or find a quiet retreat in the countryside, understanding the most popular property types in Vietnam is crucial in making an informed decision. This article will discuss the seven most popular property types in Vietnam.
1. Condos and apartments
Condominiums and apartments are among the most popular property types in Vietnam. A condo represents an individually owned unit within a bigger residential complex, where owners share interests in community property like lawns, managed by a board of unit owners responsible for maintenance and building updates. Condo rules are not as strict as those for regular apartments because condos are not detailed in Vietnamese legal documents. This lack of regulatory guidance often results in disagreements between property owners and developers. However, document 703 was issued by the Ministry of Natural Resources and Environment in February 2020 regarding the provision of pink books for such properties. The pink book serves as official documentation of property ownership for a predetermined period ranging from 50 to 70 years; however, it does not grant the holder the right to permanent residency.
On the other hand, apartments in Vietnam appeal to a wide demographic due to their diverse price range and extensive facilities. Local and international real estate companies develop these residential units, which can rise from 20 to 50 levels. Amenities in this property type in Vietnam can range from cafes, children’s play areas, swimming pools, and sports fields to more luxe options such as schools, banks, and shopping malls, essentially creating a self-contained community. Following a significant policy change in 2015, foreigners could buy and rent apartments in Vietnam. However, they are generally limited to purchasing less than 30% of units in a given project at a premium of 5-8% over the price for locals. This has opened up the Vietnamese property market to international investors, further boosting the popularity of apartment living there.
2. Villas
Villas are among Vietnam’s most popular property types, offering a unique blend of spacious living and community amenities. Typically located in gated communities, these extensive standalone houses are distinguished by their generous size, encompassing gardens, yards, and multiple stories. While each villa may mirror a uniform design aesthetic, reflecting a cohesive development strategy by companies or individuals, their separation by land grants homeowners privacy similar to single-family homes. However, like apartment living, villa residents enjoy access to communal facilities such as pools, gyms, and meeting spaces, enhancing the living experience. Remarkably, foreigners can own this property type in Vietnam through full-term leasehold rights. It can extend 50 to 70 years, making villas a sought-after investment for international buyers seeking a residence or holiday home in Vietnam.
3. Landed properties
Landed properties stand out as one of the most common property types in Vietnam, offering distinctive, standalone houses that span a variety of designs, unlike the uniformity seen in villa complexes. These properties showcase long, narrow facades and are closely packed along alleys. Despite their lack of communal facilities typically associated with residential developments, this property type in Vietnam benefits from the convenience of nearby amenities, catering to the daily needs of residents. Landed properties not only serve residential purposes but can also include a mix of agricultural land. Direct land purchase is prohibited for foreigners interested in owning a piece of Vietnam. However, the possibility of acquiring the property through a long-term lease, usually up to 70 years with options for renewal, remains an alternative option to property ownership in Vietnam, making these properties highly sought-after by locals and expats alike.
4. Townhouses (shophouses)
Shophouses in Vietnam, also known as commercial townhouses, represent a traditional design where the ground floor serves as a commercial space and the upper floors as residences. This property type in Vietnam is usually two or three levels high, situated in rows with direct road access. They have evolved from their original framework, including modern adaptations within apartment projects and standalone units. Over time, shophouses have emerged as attractive investment opportunities due to their ability to accommodate a variety of tenants, including retail stores, convenience stores, and food and beverage outlets. Their strategic placement in multifunctional areas that combine residential, commercial, and business uses makes them particularly appealing for investments. Foreigners can own shophouses with full-term leasehold rights ranging from 50 to 70 years.
5. Resort and vacation properties
Resort and vacation properties in Vietnam have witnessed a surge in popularity, emerging as the newest trend in the real estate sector. Resort properties embody real estate ventures crafted for leisure and amusement, with features like swimming pools, spas, golf courses, and beach access to attract investors. These retreats vary from seaside resorts to mountain cabins, providing lodging options like hotel rooms, condos, villas, and cabins to suit diverse tastes and financial plans. Resort properties lie in their promise of a lavish and relaxing getaway and potential investment returns. As a hub for vacation experiences, this property type in Vietnam merges home-like comforts with the upscale amenities of a high-end hotel. Furthermore, Vietnam permits foreigners to invest in these properties, granting leasehold rights for 50-70 years, further enhancing their attractiveness to international buyers and investors.
6. Office and commercial spaces
Office and commercial buildings are among the most popular property types in Vietnam and are crucial to the country’s growing economy. Office buildings vary in size, ranging from modest one-story structures to towering skyscrapers, depending on the investment scale and locality. This property type in Vietnam can house a single corporation or host multiple businesses across their floors, providing flexible workspace solutions. On the other hand, commercial spaces encompass industrial real estate like warehouses and factories, catering to the flourishing industrial sector. Foreign investors are particularly interested in these properties due to Vietnam’s open policies allowing them to enter leasehold agreements for up to 70 years for the buildings. The Vietnamese government further boosts foreign interest through incentives in industrial zones, making commercial real estate investment a compelling prospect for those looking to capitalize on Vietnam’s economic expansion.
7. Land
Vietnam’s property market offers various types of land for different uses. Although foreigners cannot directly own land, they can lease it for 50 years, extending to 70 years in some instances. This leasing agreement is that the land for sale in Vietnam does not need to be utilized immediately or for a specific purpose, offering flexibility to the leaseholder. With government approval, the leased land can be developed or subdivided further.
Here’s a closer look at four common types of land for sale in Vietnam:
- Residential land: This is where homes and apartments are typically built. It is the standard land type for living purposes.
- Agricultural land: Primarily used for farming and other agricultural activities. However, there’s an option to apply for conversion into residential land, which can be economically appealing despite the lengthy conversion process. Note that conversion isn’t guaranteed for all agricultural lands, as specific conditions must be met.
- Forest land: This type encompasses land covered with forests and is usually preserved for environmental reasons. Strict regulations prevent construction or deforestation, making it unsuitable for residential or industrial development.
- Industrial land: Reserved exclusively for industrial use, such as factories and warehouses. Housing and non-industrial activities are not permitted on this property type in Vietnam.
Frequently Asked Questions (FAQs)
What type of houses do they have in Vietnam?
The types of houses in Vietnam include bungalows, detached homes, duplexes, row houses, colonial houses, farmhouses, villas, and mansions.
Can foreigners buy properties in Vietnam?
Foreigners can buy properties in Vietnam on a long-term leasehold, often up to 70 years.
Is property expensive in Vietnam?
Yes, property is expensive in Vietnam. In Saigon (Ho Chi Minh City), average prices range from ₫ 49.48 million ($1,979) to ₫ 111.33 million ($4,453) per square meter, and in Hanoi, from ₫ 32.16 million ($1,286) to ₫ 61.85 million ($2,474) per square meter.
Can foreigners buy land in Vietnam?
Foreigners cannot buy land in Vietnam, but they can buy property on a long-term leasehold of up to 70 years.
Where to find cheap property in Vietnam?
You can find cheap property in Vietnam on Own Property Abroad.
