Determined to increase market transparency and "close the gaps" in real estate transactions.

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According to the Vietnam Institute for Real Estate Market Assessment (VARS IRE), for many years, the Vietnamese real estate market has suffered from numerous shortcomings, most notably the lack of transparency in transactions, fragmented information, and uneven distribution among market participants. This information asymmetry between businesses, investors, and buyers has facilitated speculation, price manipulation, and profiteering, leading to distorted market development at times and posing risks not only to individuals and investors but also to the safety of the financial system.

Therefore, the pilot project for a model of a State-managed real estate and land use rights transaction center is considered a sound policy, consistent with global trends in real estate market management.

Lessons from developed markets

In fact, in many countries such as the US, UK, Japan, South Korea, Taiwan, and China, real estate transactions are conducted within a centralized, transparent management ecosystem, with unified data and highly digitized processes.

In particular, China's state-managed centralized real estate transaction center model is a prime example. Observations show that Chinese citizens can complete the entire real estate transfer process, from document submission and legal verification to tax declaration and certificate issuance, in less than two hours, with a clear, transparent process and a very convenient experience.

These trading centers act as the "core" of the market, directly connecting to the unified national real estate database system. Private exchanges and brokerage firms, on the other hand, act as satellites, creating a balanced ecosystem between state management and market operation, ensuring three core elements: safety, efficiency, and quality.

"The establishment of a state-managed real estate and land use rights trading center in Vietnam is expected to bring many positive impacts."

Therefore, according to VARS IRE, the establishment of a state-managed real estate and land use rights transaction center is expected to bring many positive impacts. Firstly , it will increase transparency throughout the entire transaction process. All information related to real estate, from legal aspects, prices, mortgage status, transaction restrictions, etc., will be standardized and made public, contributing to preventing fraud and protecting the legitimate rights of citizens and businesses.

Secondly , the role of state management, supervision, and regulation will be strengthened. The trading center will become a central hub for market data, helping regulatory agencies closely monitor supply and demand, prices, and promptly detect abnormal signs such as speculation, price manipulation, and market manipulation in order to take appropriate regulatory measures.

Thirdly , it promotes administrative reform and improves the quality of public services. Digitizing the entire transaction process allows citizens and businesses to register, notarize, declare taxes, transfer ownership, etc., online, saving time and costs and reducing the burden on the administrative apparatus.

Fourth, accelerate digital transformation in the real estate sector. Integrating technologies such as artificial intelligence (AI), blockchain, and digital identity will enhance data management capabilities, ensuring transparency, security, and traceability throughout the real estate lifecycle, in line with the development direction of the digital government and digital economy.

Fifth , it lays the foundation for sustainable market development. When information is transparent and complete, investors, credit institutions, and the public will make more accurate decisions, contributing to increased market confidence and attracting domestic and foreign investment.

Sixth , restructure the real estate brokerage industry towards professionalization. This model will set higher standards for competence, ethics, and professional responsibility, thereby filtering out weak brokers and promoting the healthy development of the intermediary market.

Database standardization is a complex process

However, VARS IRE believes that one of the prerequisites for establishing a real estate transaction center is that the real estate database must meet the criteria of being "accurate, complete, clean, and functional." This is also a focus of the government's directives, linked to the completion of the real estate identification system.

In reality, the data for each property goes beyond basic descriptive information, encompassing its entire legal history, dispute status, mortgages, transaction restrictions, and transactions throughout its lifecycle. Building and standardizing such a comprehensive database is a complex process requiring significant time and resources, making it difficult to complete in a short period.  

Therefore, implementing it nationwide from the outset would present numerous challenges. A more suitable approach would be to pilot it in a few localities with favorable conditions, such as Hanoi and Ho Chi Minh City, then evaluate and refine the model before gradually expanding it nationwide.

According to VARS IRE, in the context of Vietnam's accelerated national digital transformation, administrative procedure reform, and improvement of the land data system, the construction and piloting of a State-managed Real Estate and Land Use Rights Transaction Center model is not only an urgent immediate requirement but also has long-term strategic significance.

This is a groundbreaking step towards forming a modern, transparent, and efficient real estate transaction ecosystem that better serves citizens and businesses while providing a powerful management tool for the State, contributing to building a safe, healthy, and sustainable real estate market.

Communicated by An Huy Group

According to VnEconomy