Guidelines on implementation of housing law
08:11 | 24/08/2016

VGP – The Ministry of Construction issued Circular 19/2016/TT-BXD (Circular 19) guiding the implementation of some contents on the housing development, management, use, transactions, ownership and the state management of housing as stated by the Law on Housing and Decree No. 99/2015/ND-CP, dated October 20, 2015.

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Question: What are the regulations on selling and lease-purchasing potential housings; residential housing ownership in Viet Nam by foreign organizations and individuals?

Answer:

Conditions for selling and lease-purchasing potential housings

Under the Law on Real Estate Business, one put on the market, potential condominiums or apartment complexes that are intended for housing must obtain a minutes of acceptance on the completion of the foundation of those buildings. To clarify the concept of “completion of the foundation,” Circular 19 defines it as the completed construction of the foundation of any housing works (including residential housings with mixed use); meaning the stage of completing the foundation framework and bracing or to the elevation of the lowest floor of such housing works.

Where an employer applies top-down construction measures (construction the upper floors of any residential works before constructing the foundation framework and bracing or the lowest floor plan of such housing works according to the approved construction drawing design, the finishing of the first floor plan of the construction work is determined as equivalent to the completed construction of the foundation under conventional methods.

Residential housing ownership in Viet Nam by foreign organizations and individuals

Circular 19 details how to determine the number of condominiums and detached houses owned by foreign organizations and individuals in Viet Nam.

(i) For a condominium (including the one with mixed uses), foreign organizations and individuals may own no more than 30% of the total number of residential apartments of such condominium; where the condominium has multiple units or building blocks sharing the same podium, foreign organizations and individuals may only own no more than 30% of the residential apartments of each unit or building block.

(ii) For separate housings (including semi-detached housings, independent housings, villas), foreign organizations and individuals are entitled to own the following:

In an area with a population equivalent to a ward-level administrative unit with only one investment project of housing construction, foreign organizations and individuals are eligible to own no more than 10% of the total separate housings of the project and 250% housings at a maximum; where there are two projects or more, foreign organizations and individuals many only own no more than 10% of the separate housings in each project, and the total separate housings that foreign organizations and individuals own in all projects must not exceed 250%;

In an area with a population equivalent to a ward-level administrative unit with multiple investment projects of housing construction, if foreign organizations and individuals have  owned enough separate housings as prescribed by regulations they must not buy and own more separate housings of other projects in this area.

Circular 19 took effect from August 15, 2016./.


 

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