Markets & Prices
Last updated: Wednesday, March 29, 2017
Real Estate Market Information Needs TransparencyPosted: Tuesday, November 22, 2016
While the Ministry of Construction has not been able to publish indicators related to the real estate market, buyers are still being dependent on and "besieged" by the information coming from consultants and real estate transaction floors. This can make customers feel disoriented, leading to unwise decisions in home purchasing.
In fact, in 2014, the Ministry of Construction decided to establish the Information Statistics Division, affiliated to the Department of Housing and Real Estate Market Management, to create favourable conditions for the implementation of Decree 117 (12/11/2015) related to construction, management and use of information systems for housing and real estate market, which has taken effect since January 1, 2016. It will be responsible for the statistics and aggregated information related to housing and real estate market in the country. In addition, the Ministry of Construction also has a permanent office of the Central Steering Committee on housing policy and property market that also regularly collects statistical data.
Ministry of Construction also has the Construction Economics Institute that is authorised to draft circular for Decree 117. The draft circular stipulates the responsibilities of the units under the Ministry of Construction. In particular, the Department of Housing and Real Estate Management shall be responsible for inspecting the implementation of regulations on building database systems for housing and real estate market in the locality; granting the access; providing information and data for management services of the country.
The Information Centre is responsible for chairing and coordinating with the Department of Housing and Real Estate Management and the Institute of Construction Economics to jointly build and exploit an information system of housing and real estate market. Meanwhile, the Institute of Construction Economics is responsible for receiving and updating the management data, providing information and data and calculating and aggregating statistical indicators and basic information on housing and real estate market for the announcement of the Ministry of Construction.
Besides regulations, there are clear requirements and responsibilities of the departments but the publication of information on the real estate market of the Ministry of Construction has not been processed and released. Mr Le Manh Linh, who is in charge of the Housing and Real Estate Statistics and Information Management Department, said the Information Statistics Division has the responsibility to report the statistics of the internal organs while the disclosure remains to be guided.
Meanwhile, Tran Hong Mai, Director of Institute of Construction Economics, said that the provisions related to the disclosure of information has been submitted to the Ministry of Construction and waited to be issued.
Information could not be verified
The CBRE Vietnam is one of Vietnam's largest dealers specialising in exclusively distributing luxury projects in Hanoi and HCMC. Every quarter, the company always holds a press conference to provide information related to the real estate market. The reports of the CBRE Vietnam always have notes and statistics collected from the resources that are deemed credible. However, no one either verifies or guarantees for the accuracy of the above information. This information given is based on the hypothesis that is likely erroneous, incomplete and that other factors like prices, rents and living conditions, financing, or withdrawal will be changed without notice.
Similarly, according to the report of the Vietnam Real Estate Association on the property market, the association also released a note that the Office of Vietnam Real Estate Association does not accept any liability whatsoever for the accuracy of the information mentioned in the report. The information of the report can completely be changed in accordance with the evolution of the market and we have no obligation to inform about this change.
According to Pham Thanh Hung, Deputy General Director of the CEN Group, the real estate market in Vietnam has an important role that could have great influence on the stability of the economy, but it is always in a state of lack of information that the majority of home buyers are always surrounded by unofficial information. This makes investment happen under a "herd mentality" that is based on rumours, causing irregular bouts of real estate "fever".
According to the share of secondary investors, home buyers lack information about legitimacy of the property market in general or a particular project the investors are interested in particular. This makes home buyers always passive in making a decision to buy the house. Information related to the number of apartments sold in any one project is often inaccurate. The real estate consulting firm has not found an effective method to collect statistics of transactions. Meanwhile, investors or secondary investors noted that statistical reports greatly affect their business strategies. "Many businesses in order to improve liquidity of their project have adjusted statistical reports for the purpose of creating virtual crazes and expanding the projects," one investor said.