Updated: October 2024
Yes, foreigners can legally purchase property at Capital Square in Da Nang provided they stay within the 30% foreign-ownership quota per apartment building as stipulated by Article 171 of the Housing Law 2023 and the specific implementation procedures in Decree 95/2024/ND-CP. Da Nang has evolved into a strategic market for international capital, offering a balance between lifestyle appeal and rental-led growth that differs significantly from the denser, more mature markets of Ho Chi Minh City or Ha Noi.
Why Is Capital Square Attracting Overseas Interest?
Capital Square, developed by BRG Group in An Hai Bac Ward, Son Tra, distinguishes itself through scale and its "City in City" configuration. Spanning a 61,368 m² site on the Han River beside Vincom Plaza, the project includes 14 towers and 3,391 total residences. With a planned handover in Q1 2027 and 88 high-end amenities, the project is designed to capture sustained rental demand from the professional and expatriate demographic that gravitates toward integrated developments with established infrastructure.
What Should Foreign Buyers Check Before Investing in An Hai Bac Ward?
The legal framework for foreign property ownership in Vietnam is rigid, and success depends on rigorous due diligence.
1. Confirming the Foreign-Ownership Quota
Capital Square has a designated allocation of 1,014 foreign-quota units. Under Article 172 of the Housing Law 2023, you must verify that the specific unit you are targeting is officially designated for foreign purchase before placing any deposit. Always demand written confirmation from the developer, as buying a unit outside of the remaining foreign quota renders the contract invalid for a non-national.
2. Executing the Official Sale & Purchase Agreement (SPA)
As a foreign buyer, your ownership is established solely through the official SPA signed directly with the developer. Do not entertain informal side agreements. Ensure your legal representative reviews the SPA to confirm all payment schedules, handover obligations, and title-transfer procedures. This document is the foundation of your ability to repatriate funds or exit the investment later.
3. Understanding the 50-Year Renewable Leasehold
Under Article 171 of the Housing Law 2023, foreign investors are granted a 50-year leasehold, which is renewable upon application. This structure allows you to lease or resell the property. If you sell the unit to a Vietnamese citizen, the title status converts to a permanent freehold. This conversion potential is a significant liquidity driver, as it expands your future buyer pool to include domestic investors who prioritize permanent ownership.
What Are the Essential Location and Financial Metrics?
The entry-level pricing for Capital Square starts from approximately USD 145,000. Investors should analyze the project's performance based on:
- Rental Yield: Compare projected returns against existing rental stock in Son Tra, keeping in mind the seasonality of Da Nang's hospitality and professional markets.
- Remittance Hygiene: Maintain a documented paper trail for every transfer. Vietnamese banks require the SPA, payment receipts, and tax records to verify the legitimacy of funds when you move profits out of the country.
- Currency Fluctuations: Since construction spans until 2027, be aware that exchange rate movements between your home currency and the VND will impact your total acquisition cost.
Frequently Asked Questions
Are foreigners permitted to own property at Capital Square? Yes, foreigners may own units within the allocated foreign-quota of 1,014 units, subject to the formal legal processes defined in the Housing Law 2023.
What is the ownership duration for foreign buyers? Buyers receive a 50-year leasehold that is renewable. If sold to a Vietnamese national, the title is upgraded to permanent freehold status.
When will the project be completed? Handover is currently scheduled for Q1 2027.
Is it possible to rent out the unit? Yes, foreign owners are permitted to lease their properties, provided they comply with local registration and tax obligations.
Sources:
- Housing Law 2023 (Law No. 27/2023/QH15): [https://quochoi.vn](https://quochoi.vn)
- Decree 95/2024/ND-CP (Guidance on the Housing Law): [https://chinhphu.vn](https://chinhphu.vn)
Expert Reviewer: Tuan Nguyen, Senior Legal Consultant in Vietnam Real Estate.
