Vietnam's draft law would end foreign ownership of landed houses and cap apartments at 30%
A September draft would end foreign ownership of landed houses in Vietnam, cap foreign apartment holdings at 30% per building and set 50-year terms.
Vietnam is revising its Land Law and Housing Law. The changes trace back to Resolution 21-NQ/TW, which the Communist Party's Central Committee issued on July 28, 2026. The resolution sets policy direction, and the laws that follow have not yet been finalised.
A draft revised Housing Law was released on September 13. It would end foreign ownership of landed houses, keep apartments open to foreign buyers under caps, and set a maximum 50-year ownership term.
What Resolution 21-NQ/TW sets out
The resolution replaces Resolution 18 of 2022 and directs amendments to the Land Law and related housing laws. VIR reports that the government aims to moderate property prices by increasing housing supply. Vietnam Investment Review (VIR) lists measures including: long-term land allocation for apartment projects, more rental housing, and service-life limits for apartment buildings.
The resolution also calls for greater state oversight of land prices and for faster compensation and site clearance on key projects. It shifts the focus of compensation from acquired assets toward restoring the livelihoods of affected residents.
VIR reports potential taxes on real estate gains, with higher rates for vacant and underutilised property, intended to curb speculative investment. It also says no specific regulations have been issued under the resolution yet.
Apartment lifespans and the 50-year ownership term
Service-life limits for apartment buildings are the central change in the resolution, according to MBS Research, cited by VIR. Provincial authorities would oversee planning, quality assessment and compensation coefficients. Owners would keep their corresponding rights and financial obligations when a building's service life expires.
The September draft also sets an ownership term. Ownership is capped at 50 years from the date the ownership certificate is issued. A one-time extension of up to another 50 years is possible, subject to the building's remaining useful life. The Star and Asia News Network both report these terms.
VIR reports that the Ho Chi Minh City Real Estate Association has proposed that the service-life framework not apply retroactively, so that existing apartments keep their long-term ownership rights. That is a proposal, not a rule.
What the September draft means for foreign buyers
The Ministry of Construction says removing foreign ownership of landed houses aligns the draft with Resolution 21. Under the resolution, land cannot be privatised, and foreigners cannot receive transfers of land-use rights except in the case of overseas Vietnamese, according to The Star.
Under the draft, foreign organisations operating in Vietnam, and foreign individuals permitted to enter the country, could buy or lease-purchase commercial apartments from developers. They could also receive eligible apartments as gifts or through inheritance. Foreign owners may hold no more than 30% of the apartments in a condominium building. In multi-building projects, the ceiling applies to each building separately.
Foreigners would not be allowed to own homes in projects located in areas where national defence and security need to be protected, as the government defines them. Local authorities would publish lists of projects where foreign ownership is permitted. Foreign spouses of Vietnamese citizens living in Vietnam would keep rights equivalent to those of citizens, according to The Star.
The draft's treatment of foreigners who already hold valid ownership certificates has not been reported. Danny Vo has proposed full protection of their transfer, gifting, mortgage and inheritance rights. The Star and Asia News Network both describe him as vice president of the HCM City Association for Liaison with Overseas Vietnamese.
Ministry of Construction statistics, as reported by Asia News Network, show that since the 2023 Law on Housing took effect, foreign organisations and individuals have acquired 1,519 homes nationwide. Including earlier acquisitions, the total is estimated at more than 6,000.
Developers, rebuilding and owner costs
MBS Research, cited by VIR, says the resolution also introduces clearer financial obligations for owners in apartment renovation and reconstruction. For ageing projects, redevelopment could be facilitated through owner contributions or cooperation with developers, VIR reports.
MBS Research, cited by VIR, expects developers may be given priority to pay additional fees for renovation and redevelopment. It also expects owners and developers of 50-year projects may need to make extra land-use and construction payments to extend operation. These are forecasts, not rules.
MBS also expects freehold apartment demand may rise in the near term, while service-life rules could reduce the appeal of leasehold apartments. Low-rise housing and land plots could benefit, according to the same forecast.
“For a foreign buyer, landed houses fall out of reach while apartments stay open under a 30% per-building cap.”
What the National Assembly has and has not voted on
In July, The Vietnamese reported that a National Assembly Standing Committee special session from August 3 to 24, covering several proposals including Land Law amendments.
The latest reporting on the Housing Law gives no vote date, adoption timeline or effective date beyond the September 13 release. No vote on the revised Land Law or the revised Housing Law has been reported.
Why investors and developers outside Vietnam should track it
For a foreign buyer, landed houses fall out of reach while apartments stay open under a 30% per-building cap. Ownership would be capped at 50 years from certificate issue, with a possible extension tied to the building's remaining useful life. Lists of projects published by local authorities would determine where those purchases are allowed.
For developers, Resolution 21 points toward long-term land allocation for apartments, service-life frameworks and owner-funded redevelopment. Whether the service-life rules reach existing apartments is still open, and the Ho Chi Minh City Real Estate Association has proposed that they should not.
Each of these points depends on final legal text that has not yet been adopted.
