Official sources said a pilot program is underway to collect data from six chosen cities across the country, namely Hanoi, Ho Chi Minh City, Da Nang, Hai Phong, Khanh Hoa and Can Tho. While the number may be few, the cities account for 80-90 percent of the country’s total real estate transactions.

The channel was created to address one of the glaring shortcomings of the real estate market to date – the lack of reliable and accurate information on real estate supply. While there are existing regulations that require real estate developers to file reports to the ministry and the association, they are rarely enforced, said Nguyen Tran Nam, VNREA’s President.

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A view of Hanoi

The lack of reliable and accurate information on market supply made it very difficult for the Government, businesses, investors and real estate buyers to efficiently make long-term strategic decisions. It also made the market vulnerable to land fevers and price manipulation practices.

There have been incidents in which shady investors and brokers took advantage of the lack of information to deliberately inflate land prices, said Le Hoang Chau, President of HCM City Real Estate Association.

Agricultural land, farmland and other non-housing land in some localities were poorly managed. Some lots were even divided and sold illegally, causing large financial losses for buyers and disrupting localities’ future development plans.

The project is scheduled to end by the end of this year. Our ultimate goal is to create an official information channel for the whole market, said Do Viet Chien, VNREA’s General Secretary, adding information plays a vital role in the development and stability of Vietnam’s real estate market in the future.

Source: VNA