Reviewing and analyzing the effects of housing policy to the economy: Case study of Vietnamese government ease the requirements for foreigner to buy real estate property

Abstract

Housing sector and real estate sector exist the intimate relationship and both of them take crucial roles in the national economy, the changes in these sectors may directly impact on the national economy. Vietnamese Government has already passed the Amended Housing Policy, which is the loosening requirements for foreigners to buy and own real estate property in Vietnam and it will be enforced in the middle of 2015. This is the first time Vietnamese Government release the open policy for foreigners to enter the national real estate market, so the results have not showed yet. This paper mentions the reasons why Vietnamese Government desires to apply this Amended Housing policy in Vietnam and forecasts what will happen in real estate sector and housing sector it selves and the overall economy. In order to forecast the effects, this paper investigates and studies empirical cases in Malaysia and Singapore, which experienced in giving foreigner buyers opportunities in investing real estate and housing market. From empirical cases, the research provides estimated results and effects of this Amended Housing Policy to Vietnam economy. Finally, this paper also proposes recommendations for Vietnamese Government and further researches.