Vietnam opens property market further
November 17, 2007
With a new law to allow foreigners 70-plus years of leases, Vietnam has become one of the most openmarkets in Asia
As Thai real-estate companies such as Preuksa Real Estate Plc are looking to bid for land plots in Vietnam for development, the surging demand in the country has taken a new turn after the government issued new laws that allow the lease of land for 70 years and then extensions without any payments.
The move by the Hanoi government to issue Decree 84 earlier this year brought the communist country one step closer to opening up its real-estate market to foreign ownership and in effect putting treatment on par for both local and international developers.
Decree 84, issued in May, stated that foreign investors can now lease land for 70 years, extendable without additional payment. This effectively creates a perpetual lease and means that overseas developers are effectively treated the same as Vietnamese developers, say executives of CB Richard Ellis, the world’s largest commercial real estate services firm. More reports