Can Foreigners Buy Property in Da Nang?

What Foreigners Can and Cannot Buy

Leasehold vs Freehold: What Do You Actually Own?

In Vietnam, all land is owned by the state. What buyers — both Vietnamese nationals and foreigners — receive is a Land Use Right Certificate (LURC, locally known as "sổ đỏ" or red book). This certificate grants the right to use land for a specified period.

Vietnamese nationals typically receive a permanent or long-term LURC for residential purposes. Foreigners receive a 50-year leasehold LURC.

The 50-year leasehold explained

• The initial leasehold period is 50 years from the date of purchase.
• At the end of the 50-year period, the buyer can apply to renew for a further 50 years. Renewal is not automatic but has historically been granted. The Vietnamese government has repeatedly stated its intention to make renewal straightforward for law-abiding foreign owners.
• The 2023 Housing Law amendments provided clearer language on renewal rights, giving foreign buyers more legal certainty than under the original 2014 law.
• During the leasehold period, you can sell, rent out, and pass the property to heirs (if heirs qualify for foreign ownership under Vietnamese law).

The 30% Foreign Ownership Quota

Vietnamese law limits the number of apartments a foreigner can buy in any single building:

• Maximum 30% of total apartments in any residential building can be foreign-owned.
• Maximum 250 apartments per administrative ward (phường) can be foreign-owned, regardless of building size.
• Once a building reaches its 30% quota, no further sales to foreigners are possible until existing foreign owners sell their units.

In Da Nang, the most popular buildings among foreign buyers — particularly beachfront buildings in Son Tra and My Khe — sometimes reach their quota. When viewing properties, always ask the agent to confirm the current foreign ownership percentage of the building.

Condotels: A Special Case

Da Nang has many condotel developments — hotel-apartment hybrid units marketed to investors for short-term rental returns. Condotels are popular in beachfront areas and are often marketed to foreign buyers with promised yields of 8–12%.

Condotel ownership risks

• Legal ambiguity: Condotels occupy a grey area in Vietnamese law. They are classified as commercial (not residential) units, which affects your ownership rights. Many condotels do not issue a red book (LURC) to buyers — instead giving a "pink book" (apartment ownership certificate) which has different legal status.
• Yield guarantees are not guaranteed: Promised rental yields of 8–12% are rarely achieved after the first few years. Management companies that guarantee yields may reduce or stop payments if the hotel underperforms.
• Resale difficulties: Condotels are harder to resell than residential apartments. The secondary market is thin, and buyers face the same legal uncertainty.
• No permanent residency benefit: Buying a condotel does not entitle you to a residence permit or residency status.

The Buying Process: Step by Step

• Find a property and agree a price

  Use a licensed real estate agent. Confirm the building's foreign ownership quota is not exceeded before proceeding.

• Engage a Vietnamese lawyer

  This is not optional. A lawyer will verify ownership title, check for encumbrances, confirm the LURC status, and manage the contract process. Budget VND 20–50 million ($800–2,000) for a straightforward apartment transaction.

• Conduct due diligence

  Your lawyer checks: the seller's title, any mortgages on the property, the building's foreign ownership percentage, planning status, and any unpaid maintenance or management fees.

• Sign the Sales and Purchase Agreement (SPA)

  The SPA is signed in both Vietnamese and English. The Vietnamese version is legally binding. Do not sign any document you have not had independently translated and explained.

• Pay a deposit

  Typically 10–30% of the purchase price. Ensure the deposit is held by a neutral third party (notary or escrow) wherever possible.

• Pay the balance and complete

  Balance is paid at completion (typically within 30–90 days of SPA signing). Funds must be transferred to Vietnam from a foreign bank account and properly documented for currency compliance.

• Registration and LURC issuance

  The property is registered with the local land registry (Department of Natural Resources and Environment). The LURC (your ownership certificate) is issued in your name. This process takes 3–6 months from completion.

Transaction Costs

Total buyer costs (registration tax + legal + notary) typically run to 1.5–3% of the purchase price for a straightforward apartment transaction.

Common Scams and Risks

• Nominee ownership: A foreign buyer puts property in a Vietnamese national's name to circumvent ownership rules. This is illegal and gives the foreign buyer no enforceable ownership rights. The Vietnamese national can legally claim the property.
• Title fraud: Sellers misrepresent ownership status. Always verify the LURC directly with the land registry through your lawyer — never take a seller's word for it.
• Overquota buildings: A developer or agent sells a unit in a building that has already reached its 30% foreign quota. The buyer cannot register the LURC. Always verify quota status before signing.
• Fake escrow: Deposits paid to unofficial intermediaries disappear. Use a notarised escrow arrangement, not informal transfers to agents.
• Inflated yields: Off-plan condotel projects sold with guaranteed yields that are never paid after completion. Research the developer's track record and insist on guarantees backed by assets, not promises.

Frequently Asked Questions

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