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Untrained brokers hurting real estate market: Experts
Unlike here, real estate agents abroad receive professional training before being licensed, providing a measure of market stability.
The lack of professionalism among many local real estate brokers is partly to blame for property market fluctuations that are hurting the industry, experts said at a conference last Saturday.
Speaking at the conference on International Networking and Cooperation in Real Estate Investment and Brokerage in Ho Chi Minh City, Deputy Minister of Construction Nguyen Tran Nam said the presence of untrained brokers focused on earning quick and easy profits was increasing the element of risk in the local real estate market.
Vu Thi Hoa, deputy head of the Ministry of Construction’s housing and real estate market management department, said brokers were not able to perform their proper role as intermediaries because they were not aware of all the functions that this entailed.
Most local brokers are simply salespeople rather than real estate agents able to dispense legal and market advice to their clients, speakers said at the conference.
They also said property prices in Vietnam were ballooning because many brokers were unethically pushing prices upwards to earn higher commissions.
Marc Townsend, managing director of property consultant firm CB Richard Ellis Vietnam, said Vietnam’s real estate market had the characteristics of high profits as well as high risks as there were many brokers in the fray.
“To become a broker in the US, one has to take a course in eight subjects including finance, law and management,” said Tuan Nguyen of US-based Global Realty. “However, I realize there are very few professional brokers here.”
“In Vietnam, people try to save money by selling houses themselves, but they are not sure about the correct formalities... and they may also have problems with taxes,” said Mathew Tuton of Australia-based Strategies 4U.
Nguyen said Vietnam needs at least 100,000 brokers with professional and legal knowledge.
He also said brokers should work at independent real estate exchanges where they can share experiences and learn ethical norms in the industry, instead of exchanges run by real estate developing firms that are likely to focus on their own benefits.
There are now 45 real estate exchanges run by commercial banks or real estate firms in Vietnam.
Nam said the government needs support from international brokers who can help stabilize the local real estate market through alliances with Vietnamese brokerage firms.
Truong Anh Tu of Sacomreal said Vietnam needs to establish a real estate brokers’ association to professionalize the industry.
Still healthy
Despite the problems facing the industry, the real estate market is still quite healthy, said Le Hoang Chau, chairman of HCMC’s Real Estate Association. Several projects, including luxury apartments, have been able to sell of all their units, he said.
He said some real estate developers in Hanoi had announced that they could sell a 60-square meter apartment for as low as VND200 million (US$12,000).
“If this price is available, it would revolutionize the current real estate market,” he said.
Nam said the government plans to increase supply for the housing market by launching new projects to build low-priced houses and apartments for low income earners, students and workers in industrial parks.
The deputy minister of construction noted that the supply of housing in Vietnam was relatively low. Per capita housing provided by the domestic real estate sector is 12 square meters in Vietnam compared to 30 square meters in France.
The government is making specific efforts to promote a healthy real estate market, particularly for students and low-income families, said Tran The Ngoc, Deputy Minister of Natural Resources and Environment.
Two proposals on real estate development will be submitted to the government soon, which would help the market cope with difficult times, he said, noting the current priority is on increasing low income housing.
“Local real estate firms have focused on luxury housing and ignored the high demand from low and medium income families,” he said. “The government would like to change this and meet the demand of the majority.”
Hoa said the government’s role includes creating a legal framework, managing and joining the market as the largest supplier of land.
She said the government’s role is even more important at time of recession and suggested that a legal framework be completed first to build a strong foundation for the market's development.
Vinh Bao - Minh Quang
Thanh nien
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