Article 60 of the draft real estate business law (amended) says that all real estate transactions have to go through trading brokerage floors.

According to the Vietnam Confederation of Chamber and Industry (VCCI), the regulation on trading floors was removed in the 2014 Real Estate Business Law to create favorable conditions and minimize administrative procedures for individuals and organizations joining the property market.

The removal was a decision which fit the quiet real estate market in 2014, when the law was compiled.

VCCI said that requiring real estate transactions to be carried out via trading floors may bring back old problems and create more administrative procedures for involved parties in transactions to follow, which will affect the number of transactions.

Although transactions, if carried out via trading floors, are transparent and help the state control information about the property market, people raised doubts about the regulation in the past and it was amended after a period of application.

Some enterprises have asked the law compilation board to keep the current regulations intact, and give the right to investors and parties involved in transactions to make decisions themselves. This will create an open mechanism for real estate activities.

At present, transactions are not required to go through trading floors, but many trading floors collude with each other to manipulate prices, thus affecting investors. There have been many fraudulent cases of project purchases that did not meet requirements via floors, causing negative consequences.

This was a problem pointed out by MOC. Some brokers have weak expertise and limited understanding about the laws. They are not professional and are unethical at business, thus causing losses to customers. 

Real estate trading floors engage in speculation to manipulate prices and cause ‘artificial fever’, thus causing chaos to the market. 

In many cases, trading floors join hands with each other to buy the entire floor or entire block of apartments to enjoy preferences by project developers and high discounts. After that, they artificially create a supply shortage and push prices up. As a result, market prices are determined by trading floors.

Thu Hang