Vietnam Ministry of Construction is collecting opinions for the draft amended Law on real estate business. Notably, project owners may not be required to introduce and sell their products through exchange floors as currently. Many property traders are worried because if the regulation is applied, thousands of real estate exchange floors in the country will be closed.
Exchange floors will lack products
The current law on real estate trading regulates that every property trading in Vietnam, especially of apartment buildings and urban areas, must be conducted through real estate exchange floors to ensure publicity, transparency and interest of all parties. However, for a long time of implementation, the regulation has still not brought satisfactory effects, therefore, Vietnam Ministry of Construction is collecting opinions for the draft before submitting it to the Government.
In the amended draft, the content requiring every organisation and individual to sell, assign, rent or rent-sell property through real estate exchange floors is eliminated. Instead, the Government encourages them to conduct property business through exchange floors to ensure publicity, transparency and interests of all parties. As for property types that specialized laws regulate that project owners have to report to state management authorities before selling, assigning, renting, renting and selling their products, project owners must comply with specialized laws.
According to representatives of Department of House and Real Estate Market Management (Ministry of Construction), the new regulation will fix current problems in the real estate market. Logically, if the current regulation is effectively applied, the market will operate publicly, transparently. However, the fact shows that it only makes procedures more complicated, raises expenditures for property purchasers or tenants.
Besides, property trading through exchange floors will take effect only when the market is effervescent. However, currently the real estate market is “frozen”, promotion programmes still do not bring many effects. Therefore, the current regulation makes it difficult for project owners to persuade customers to return to the market.
Controversy
According to Mr Pham Si Liem, Vice Chairman of Vietnam Federation of Civil Engineering Association, the change in law on real estate trading is necessary, because in fact many project owners open exchange floors with only the aim of selling their products. The current regulation creates opportunities for real estate companies to monopolize their products. Mr Liem also said that, sellers and buyers should have the right to transact through brokerage offices, which will ensure their interests more effectively.
However, there are different opinions that the amended regulation will “kill” real estate exchange floors. Mr Vu Kim Giang, Director of Thai Minh Quang Real Estate Exchange Floor argued that the current regulation is creating a good habit among people, which is proved by increasing number of transactions through exchange floors. If legal regulations change too rapidly, they will negatively affect the society, create difficulties and unfair conditions for exchange floors. Moreover, many people who have invested intensely to open exchange floors, train employees are standing on the edge of losing their investment.
Mr Nguyen Hoang Nam, Director of Info – Ocean Group Real Estate Exchange Floor assessed: “If the amended draft is approved, there will be a big change in property transaction and it can be understood as a loosening real estate business management”.
The Law on Real Estate Business in 2006 regulates that every property trading must be conducted through real estate exchange floors. These floors have to list information publicly, transparently in public media. However, in fact, not every exchange floor complies with these regulations, while provincial departments of construction do not have enough resources to manage the operations of exchange floors.
Mr Nam said that, loosening the current regulation will reduce processes for customers and project owners. However, if the market is not well managed, transparency in the real estate market will probably be lost.
Luong Tuan
Đăng ký: VietNam News