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Tuesday, July 16, 2024

NA economic committee opposes property trading via exchange

The Saigon Times

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HCMC – The Economic Committee of the National Assembly (NA) has recommended against making it mandatory for real estate products to be traded through an exchange, citing concerns over potentially higher prices and fees.

Currently, real estate in Vietnam is not required to be traded through an exchange. However, the Government has noted that 99% of property developers choose to sell their products through exchanges or brokerages. Furthermore, major real estate firms have established their own exchanges and sales departments.

The Government has drafted an amended law on real estate trading, which will be discussed during the NA sitting slated to resume today, June 19, after a nine-day break. The NA already met from May 22 to June 10.

The proposed law would require real estate products sold or rented out by developers, as well as land transfers, leases, and sub-leases related to real estate projects with existing technical infrastructure, to be traded on an official exchange.

While these regulations aim to combat fraudulent projects and enhance transparency in the real estate market, the NA Economic Committee argues that trading through an exchange should be encouraged rather than forced.

They contend that mandatory exchange trading could result in higher housing costs, create a monopoly in the real estate market, and potentially enable tax evasion by sellers and buyers.

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