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Lack of transparency hits property floors
Recent Ministry of Construction statistics show that only 15 per cent of real estate transactions take place on transaction floors.
This means that the development of the floors has not yet met the expectation of a real estate market seeking transparency.
According to the ministry, the market is plagued by poor transparency.
This is one of the main reasons for the retarded development of the domestic real estate market.
Land and home buyers are keen to have clear information about the house or land they want to buy.
To achieve this, the establishment of a trading floor system under the strict control of authorised agencies has been proposed.
According to the Department of Housing Administration and Real Estate under the Ministry of Construction, the country has a total of 600 real estate transaction floors.
Despite this, the number of transactions remains very low.
Total real estate sales nation-wide through these floors totalled 3,679, - 327 in Ha Noi and 3,352 in HCM City.
Many investors have sought to avoid trading through transaction floors by exploiting legal loopholes. As a result the number of deals made through the transaction floors remains low.
Director of Housing Administration and Real Estate Nguyen Manh Ha said the department requested the floors to report their performance from the beginning of 2010.
Only 20 per cent have so far complied.
Deputy Minister of Construction Nguyen Tran Nam acknowledged that agencies had not fined violators.
He also admitted that administrative procedures to set up real estate floors were too simple.
He said that in the current context, authorised agencies needed to gradually improve the quality service provided by trading floors so as to eliminate those that were efficient.
Regular inspections were not sufficient to deal with violations by investors and trading floors operators.
Director Nguyen Manh Ha said that current laws could not regulate all the negative aspects of real estate services.
He said it was clear that the legal system lacked a standard business practice for real estate services.
Ha added that the lack of a common standard had led to a disparity in the market and that people had little faith in real estate transaction floors.
vietnamnews
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