Help determine accurate land prices

According to the Vietnam Association of Realtors (VARS), up to now, the real estate market, including the land use rights market, has not developed stably, transparently, sustainably, and has many potential risks. The reason comes from the fact that the Vietnamese real estate market has a two-price land price mechanism. In which, the price framework of the state and the market have a clear difference.

Also from that difference, many legal problems and difficulties have occurred, especially in determining land prices and land use fees. In addition, after a series of land violations, many projects have also been delayed due to waiting for price appraisal and land use fee calculation. Many appraisal units are also afraid of risks in the valuation work.

Although many localities apply coefficient K, bringing the land price list closer to the market price. However, the determination of coefficient K still has many subjective factors, which may not closely follow the market price, and is not suitable for certain cases. Therefore, to perfect the land price determination mechanism, the Central Resolution stipulates: Abolish the land price framework, have a mechanism and method to determine land prices according to market principles, and stipulate the functions, tasks and responsibilities of the agency responsible for determining land prices.

In addition, to determine land prices that are close to market prices and commensurate with the value brought about, it is necessary to have data on real estate values ​​based on actual transfer history. According to VARS, requiring real estate transfer transactions through trading floors, requiring payment through banks and strictly controlling land purchase and sale contracts are the basis for providing the most accurate price data. When a database is built to ensure that land prices are close to market prices, it will ensure harmony between the parties. From there, the market will develop in a safer, healthier and more sustainable direction.

In addition, requiring real estate trading through the floor will also help the State have a tool to manage information about the real estate market, thereby issuing policies to promptly regulate the real estate market to develop healthily and stably.

In addition, the advantage of trading through the floor is also related to protecting investors and home buyers because the floors are forced to check the authenticity and legality of the project before reaching consumers.

Responding to this issue, Dr. Nguyen Van Dinh - Chairman of VARS also affirmed that the exchanges will be the gatekeepers, ensuring the implementation of the functions that the State is regulating to avoid tax evasion, transparency of money sources, and avoidance of money laundering and fraud.

However, Mr. Dinh said that if real estate transactions are required through the floor, the floors and brokers must be more standardized, more professional and comply with strict regulations. Therefore, not all floors and brokers want to apply the above direction, but many still want to apply according to the current law, which is not mandatory.

Fear of increased costs

In addition to the above advantages, many opinions show opposing views on this regulation. Firstly, it violates the principles in business activities, hinders the freedom of business as stipulated in other laws such as the Enterprise Law and the Investment Law. Accordingly, real estate trading floors are not state management agencies and do not provide public services under the authorization of the State. Therefore, when regulations require other entities to use the services of a business, it often creates inequality.

In addition, investors can set up real estate floors to sell their own products. At that time, the goal of the floor is only to be able to sell as many products as possible to investors. Therefore, the rights of buyers will not be guaranteed.

Meanwhile, most real estate buyers and sellers today want to transact directly through the investor. For many customers, the trading floor is just a place to provide information, answer questions for customers and support buying and selling procedures.

As in the current market, the issues that buyers are most concerned about are still legal procedures, whether the project is eligible for sale or not? This is information related to state management agencies, specifically the Department of Construction, which is responsible for checking and announcing to the people. Therefore, accessing information on the floor is only an initial reference tool.

Because as mentioned above, with the goal of selling as many products as possible to investors, it is impossible to be sure that a private enterprise such as a real estate trading floor can ensure that it provides customers with the most complete and accurate information about the legal issues of the project, especially projects selling future housing.

In addition, buying and selling real estate through the floor also raises concerns about costs, procedures, personnel and legal responsibilities. That will put investors in a difficult position when having to increase product costs, further complicating real estate buying and selling activities.

Many opinions say that, instead of requiring transactions through the floor, the law should stipulate that investors and real estate trading floors must have periodic reports to state management agencies to grasp the database of real estate transactions. This will help make the market transparent as well as have a basis to determine land and apartment prices according to actual transactions.

With many conflicting opinions on this regulation, recently at the National Assembly, Minister of Construction Nguyen Thanh Nghi also said that the drafting agency will report to the Government to continue to carefully study and absorb comments on this content to ensure the completion of regulations on real estate trading floors to be appropriate, strict, clear in responsibilities, ensuring the rights of people and businesses. At the same time, it will review and complete the confirmation of transactions through real estate trading floors, the responsibilities of real estate trading floors, and the obligations of real estate trading floors.