What's the purchase process to buy a property in Ho Chi Minh City?

Authored by the expert who managed and guided the team behind the Vietnam Property Pack

Yes, the analysis of Ho Chi Minh City's property market is included in our pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Ho Chi Minh City. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Vietnamese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Ho Chi Minh City, Hanoi, and Da Nang. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can foreigners legally buy property in Ho Chi Minh City?

Yes, foreigners can legally purchase property in Ho Chi Minh City under Vietnam's foreign ownership regulations.

Vietnamese law permits individual foreigners with legal entry status to buy apartments, houses, and villas within licensed commercial housing projects. You must hold a valid passport and demonstrate legal entry into Vietnam to qualify for property ownership.

The ownership structure operates as a 50-year leasehold rather than freehold ownership. This leasehold is renewable subject to regulatory approval at the end of the 50-year period. Direct land ownership remains prohibited for foreigners, but the leasehold grants you substantial property rights including the ability to sell, rent, or mortgage your property during the ownership period.

As of September 2025, these ownership laws apply consistently across Ho Chi Minh City's various districts, making property purchase accessible for qualified foreign buyers.

What types of properties are available for purchase as a foreigner?

Foreigners can purchase condominiums, houses, and villas in Ho Chi Minh City, but only within specific licensed commercial projects with strict ownership quotas.

Property Type	Foreign Ownership Quota	Availability
Condominiums	Maximum 30% of total units	High availability in most projects
Houses in Projects	Maximum 10% of total units	Limited availability, high demand
Villas in Projects	Maximum 10% of total units	Very limited, premium pricing
Standalone Houses	Not permitted	Unavailable for foreign purchase
Social Housing	Not permitted	Reserved for Vietnamese citizens
Land Plots	Not permitted	Leasehold rights only through property
Commercial Property	Through local company only	Requires business registration

How do I check if a property has a clean legal title?

Verify property legal title by examining the Pink Book for apartments and the Red Book for land use rights, then cross-check with government registries.

The Pink Book (Certificate of Ownership) serves as the primary ownership document for apartments and houses, while the Red Book (Land Use Rights Certificate) covers the land component. Both documents must be authentic and current to ensure clean title transfer.

Visit the local Department of Natural Resources and Environment or the Land Registration Office to confirm document authenticity. These government offices maintain official records and can verify whether any encumbrances, mortgages, disputes, or outstanding legal claims exist against the property. Request a comprehensive search that covers liens, court judgments, and pending legal actions.

Engage a qualified Vietnamese legal expert to assist with document verification and registry procedures. Professional legal review helps identify potential issues with certificate authenticity, boundary disputes, or incomplete documentation that could complicate your purchase.

It's something we develop in our Vietnam property pack.

What are the main steps to sign a sale and purchase agreement in Vietnam?

The sale and purchase process follows five essential steps from property reservation to certificate issuance.

1. **Research and Reserve Property**: Select a qualified project approved for foreign ownership and pay a booking deposit of 5-10% of the property value to secure your unit.2. **Verify Developer Credentials**: Confirm the developer holds proper licenses and the specific project has government approval for foreign sales before proceeding.3. **Review and Sign Sale and Purchase Agreement (SPA)**: Examine all contract terms including payment schedules, delivery dates, penalty clauses, and warranty provisions before signing.4. **Execute Payment Schedule**: Make payments according to the agreed timeline through a Vietnamese bank account in Vietnamese Dong (VND) currency only.5. **Receive Pink Book Certificate**: Obtain the official ownership certificate valid for up to 50 years upon completion of all payments and legal requirements.

Do I need to set up a local company to own certain types of property?

Foreign individuals do not need to establish a local company to purchase approved residential properties in Ho Chi Minh City.

Vietnamese law allows direct individual ownership of residential properties within licensed commercial projects under the foreign ownership quotas. You can buy condominiums, houses, and villas in your personal name without corporate structure requirements.

However, purchasing commercial or industrial properties typically requires establishing a locally registered Vietnamese company. Business properties, office buildings, retail spaces, and industrial facilities generally fall under different ownership regulations that mandate corporate ownership structures for foreign investors.

If you plan to operate a business from your property or engage in commercial activities, you may need to form a local company regardless of the property type. Consult with Vietnamese business lawyers to determine if your intended property use requires corporate registration.

What taxes and fees should I expect during the purchase process?

Property purchase in Ho Chi Minh City involves several mandatory taxes and fees totaling approximately 10.5-13% of the property value for new builds.

Fee Type	Rate	When Paid
Registration/Transfer Fee	0.5% of property value	At ownership transfer
Value Added Tax (VAT)	10% on new construction	Included in purchase price
Personal Income Tax	2% if reselling property	At time of resale
Notary Services	Fixed fees vary by district	During document signing
Legal Advisory Fees	1-2% of property value	Throughout process
Administrative Processing	Various small fees	Multiple stages
Bank Transfer Fees	0.1-0.5% of transfer amount	With each payment

How do I transfer money legally into Vietnam to pay for the property?

All property payments must be transferred through the Vietnamese banking system and converted to Vietnamese Dong (VND) using legitimate channels with declared purposes.

Open a Vietnamese bank account or work with your developer's designated bank to receive international transfers. Major Vietnamese banks like Vietcombank, BIDV, and VietinBank facilitate property purchase transfers for foreign buyers with proper documentation.

Declare the transfer purpose as "property purchase" and provide supporting documents including the signed Sale and Purchase Agreement, your passport, and Vietnamese entry documentation. Banks require clear paper trails for compliance with Vietnam's foreign exchange regulations and to enable future fund repatriation if needed.

Avoid unofficial money changers, cryptocurrency transfers, or cash transactions above legal limits. Using unauthorized channels can result in legal complications, inability to complete property registration, and potential forfeiture of funds under Vietnamese anti-money laundering laws.

It's something we develop in our Vietnam property pack.

What role does a notary play in finalizing the transaction?

Notaries provide mandatory certification and witnessing services that make your property purchase legally valid under Vietnamese law.

The notary witnesses and officially certifies the signing of your Sale and Purchase Agreement, ensuring all parties understand the contract terms and sign voluntarily. This notarization process creates legal binding between buyer, seller, and any involved parties like developers or agents.

Vietnamese law requires notarized SPAs for property transactions to be recognized by government authorities. Without proper notarization, your purchase agreement cannot proceed to ownership transfer and Pink Book certificate issuance.

Notaries also verify identity documents, confirm legal capacity of all signing parties, and ensure the transaction complies with Vietnamese property laws. They maintain official records of the transaction that can be referenced for future legal purposes or ownership disputes.

How long does the entire purchase process usually take in Ho Chi Minh City?

A complete property purchase in Ho Chi Minh City typically requires 3-6 months from initial reservation to Pink Book certificate issuance.

Ready-to-move properties from established developers usually complete within 3-4 months when all documentation is properly prepared and payments proceed on schedule. This timeline assumes no complications with legal verification, financing, or administrative processing.

Off-plan or under-construction properties may take 6 months to several years depending on construction completion dates and government processing timelines. Delays commonly occur due to construction schedules, permit approvals, or developer financial issues in new project developments.

Factors that can extend the timeline include complex legal title verification, missing project approvals for foreign sales, payment processing delays through Vietnamese banks, or administrative backlogs at government offices during peak property buying seasons.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What common mistakes do foreigners make when checking property ownership rights?

Foreigners frequently fail to verify project approval for foreign sales and miss checking quota availability within their target developments.

Many buyers skip verifying whether their chosen project has specific government approval for foreign ownership sales. Not all residential projects in Ho Chi Minh City are licensed to sell to foreigners, and purchasing from unauthorized projects can result in invalid ownership certificates.

Another critical mistake involves failing to authenticate Pink Books and Red Books or not checking for existing mortgages, debts, or legal disputes attached to the property. Fake or disputed certificates can lead to ownership challenges and financial losses after purchase completion.

Foreigners also commonly attempt to buy standalone houses that are not part of eligible commercial projects. Vietnamese law only permits foreign ownership of houses within licensed residential developments, not individual properties outside approved projects.

Buyers often neglect to verify quota availability within their desired building or project. Even approved projects have limited foreign ownership slots, and exceeding these quotas invalidates the purchase regardless of legal compliance in other areas.

What confusions often happen with the "50-year leasehold" rule for foreigners?

Many foreigners incorrectly assume automatic lease renewal after 50 years, when extensions actually require regulatory approval that is not guaranteed.

The biggest confusion involves expecting automatic renewal rights similar to Western leasehold systems. Vietnamese law requires formal application and government approval for lease extensions, which may be subject to changing regulations, policy updates, or administrative discretion at renewal time.

Foreigners often misunderstand that the 50-year leasehold grants property structure ownership, not land ownership. You own the building, apartment, or house, but the underlying land remains under Vietnamese state or private ownership through the leasehold arrangement.

Another common misunderstanding involves inheritance and transfer rights during the leasehold period. While you can sell, rent, or transfer your property rights during the 50-year term, future renewal risks affect long-term investment value and family succession planning.

Buyers frequently underestimate renewal risks when calculating investment returns or retirement planning. Property values may be affected as the lease approaches expiration, and renewal uncertainty creates financial planning challenges for long-term residents.

It's something we develop in our Vietnam property pack.

How can I avoid issues with developers or agents when buying new projects in Ho Chi Minh City?

Choose established developers with proven track records and use only licensed agents while independently verifying all project documentation before making payments.

**Essential due diligence steps:**1. **Research Developer Reputation**: Select developers with multiple completed projects and positive buyer reviews from previous developments in Ho Chi Minh City.2. **Verify Agent Licensing**: Use only agents registered with Vietnamese real estate associations and avoid unlicensed intermediaries or individual brokers.3. **Independent Legal Verification**: Hire your own Vietnamese lawyer to review all sale documents rather than relying solely on developer-provided legal services.4. **Project Approval Verification**: Confirm the specific project appears on official government lists approved for foreign ownership sales.5. **Staged Payment Protection**: Never pay large sums upfront; follow standard payment schedules tied to construction milestones and legal completion stages.6. **Monitor Quota Compliance**: Verify foreign ownership quotas are not exceeded in your building or project before signing contracts.7. **Avoid Off-Market Deals**: Purchase through official sales offices rather than unauthorized resellers or speculative quota holders.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Veles Club - Foreign Property Ownership Guide
2. Realtique - Vietnam Property Legal Guide 2025
3. Visreal - Latest Property Regulations
4. BambooRoutes - Vietnam Foreign Property Ownership
5. AN Law Vietnam - Foreign House Purchase
6. Baker McKenzie - Vietnam Real Estate Law
7. Wise - Buying Property in Vietnam
8. QDND - HCMC Foreign Ownership Projects