Although four million overseas Vietnamese are now permitted to buy houses in Vietnam following the passage of new regulations last year, only some 140 have succeeded in doing so.

Many who were considering buying one were dissuaded by the rising prices.

The price volatility was something to be carefully watched before deciding to buy, Nguoi Lao Dong (The Laborer) newspaper quoted Vinh Nghiem, an American Vietnamese, as saying, since he was intending to return home.

The developer of a high-class condominium project, who asked not to be named, said finance was the main obstacle for overseas Vietnamese buyers since owning a house in their home country was a big burden to start with. Buying another in Vietnam has not been a priority, especially during the global economic downturn, he added.

Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said the fact that property transactions attract either a 25 percent capital-gains tax or a 2 percent flat tax on the price is discouraging buyers.

Bound up in red tape

But the door for Vietnamese expatriates to buy houses is just half open since they must prove their Vietnamese origin under the 2008Nationality Law, Luong Bach Van, chairwoman of the Ho Chi Minh City Liaison Association with Overseas Vietnamese, said.

So owning a house or apartment would be a challenge for many people born abroad if their parents are dead and they have no relatives left to prove their origin, she added.

They will also have to reside in Vietnam for at least three months to qualify to buy houses and attached lands though it has not been spelled out if that period has to be uninterrupted.

While amendments to the Housing Law and Land Law allowing overseas Vietnamese to buy housing took effect last September, a decree providing guidelines for their implementation has just been submitted to the government for approval.

The government is also considering allowing overseas Vietnamese to buy land.

Rol.vn - Source: Vietnews