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Regulations on real estate transactions in Vietnam which must go through the real-estate trading floor have not been approved yet

  • 6 months ago
  • Blog
  • 1

The Ministry of Construction is collecting comments on the draft “Outline of the revised Law on Real Estate Business“, in which the most concerned issue is the regulation that “real estate transactions must go through trading floors”. This regulation is attracting mixed opinions.

Previously, the Law on Real Estate Business in 2006 stipulated that real estate project investors “must sell houses and construction works through real estate trading floors”. However, the Law on Real Estate Business in 2014 has abolished the above regulation and has allowed housing project investors to have the full choice of selling houses, construction works or renting reputable and capable real estate trading floor to sell products. Currently, with the “Outline of the Law on Real Estate Business, the regulation that real estate transactions must go through the floor is proposed to be re-applied.

Limiting risks for customers

Many experts have said that the 2014 Law on Real Estate Business allows real estate project investors to decide for themselves how to bring their products to customers, the purpose is for investors to be proactive with the market, the expense. However, the results obtained were not as expected. The most obvious proof is that real estate prices are still rising. Particularly in Hanoi and Ho Chi Minh City, the affordable housing segment is almost no longer on the market.

Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokers Association assessed that recognizing real estate developers and investors each year create hundreds of thousands of products, contribute to supplying the market real estate urban infrastructure, but at the same time, it also creates many consequences and causes many instabilities for the Vietnamese real estate market with cases of customers and investors complaints, lawsuits, disputes, demonstrations and so on because “investors speak with their tongue in their cheek”, this phenomenon is becoming more and more serious. On the other hand, tax evasion, money laundering and so on are also taking place and are difficult to control”.

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