OFFICIAL CHANNEL TO FEED REAL ESTATE MARKET WITH SUPPLY INFO

An official channel that will provide Viet Nam’s real estate businesses with information such as the number of licensed projects and projects awaiting licenses in a given area is being developed by the Department of Properties and Real Estate Management under the Ministry of Construction and the Vietnam National Real Estate Association (VNREA).

Official sources said a pilot programme is underway to collect data from six chosen cities across the country, namely Ha Noi, HCM City, Da Nang, Hai Phong, Khanh Hoa and Can Tho. While the number may be few, the cities account for 80-90 per cent of the country’s total real estate transactions.

The channel was created to address one of the glaring shortcomings of the real estate market to date – the lack of reliable and accurate information on real estate supply. While there are existing regulations that require real estate developers to file reports to the ministry and the association, they are rarely enforced, said Nguyen Tran Nam, VNREA’s President.

The lack of reliable and accurate information on market supply made it very difficult for the Government, businesses, investors and real estate buyers to efficiently make long-term strategic decisions. It also made the market vulnerable to land fevers and price manipulation practices.

There have been incidents in which shady investors and brokers took advantage of the lack of information to deliberately inflate land prices, said Le Hoang Chau, President of HCM City Real Estate Association.

Agricultural land, farmland and other non-housing land in some localities were poorly managed. Some lots were even divided and sold illegally, causing large financial losses for buyers and disrupting localities’ future development plans.

“The project is scheduled to end by the end of this year. Our ultimate goal is to create an official information channel for the whole market,” said Do Viet Chien, VNREA’s General Secretary.

“Information plays a vital role in the development and stability of Viet Nam’s real estate market in the future. Officials from the construction ministry, our association and other organisations in the field are working closely together to make that a reality,” he said.

Source: VIR

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