Prime Minister Pham Minh Chinh has just issued an official dispatch assigning the Ministry of Natural Resources and Environment to preside over and coordinate with the Ministry of Construction and relevant agencies to study the establishment of a land use rights (LUR) trading floor. This is a completely correct policy, with a positive impact on the market.
However, the process of building and perfecting the operating mechanism of this trading floor needs to be carefully researched and evaluated before being submitted to competent authorities for promulgation at the appropriate time to ensure feasibility and bring maximum benefits to relevant parties.
Establishing a land use rights exchange is not simple and cannot be done overnight. (Photo: TMC)
Commenting on this, the Vietnam Association of Real Estate Brokers (VARs) said that for a long time, real estate (RE) traded through real estate trading floors were mainly future products, without land use rights. Meanwhile, land use rights were mostly traded freely and uncontrolled among the people.
Meanwhile, this type of “product” accounts for a large quantity and high transaction value in the real estate market. This becomes the source of many consequences, disrupting the market, causing the State to lose tax revenue.
Researching the establishment of a land use rights exchange is a completely correct policy, having a positive impact on the market. Because the land use rights exchange will contribute to managing and monitoring the real estate market more fully and completely instead of just stopping at future housing products and project land as at present.
In essence, the land use rights trading floor is not “completely new”. From a certain perspective, this is an addition to regulate and control a large part of “real estate products” including all real estate segments, not just housing that is being left open in the market.
Also according to VARs, similar to the way other exchanges operate, "products" that want to be traded through the QSDĐ exchange must have specific and clear listed information, with strict verification, especially legality and public price.
This is an important basis to help buyers feel secure in making transactions. Avoid buying and selling houses on paper, fraudulent activities, false information, buying and selling houses at "two prices", and price manipulation.
Strict control from the “input” stage along with the entire transaction process will contribute significantly to helping the market operate properly, safely and transparently. It is the basis and premise for the market to develop more stably and sustainably.
When deploying the land use rights trading floor, if combined with the real estate trading floor, it will be a source of providing and updating transaction data, a basis for building data, and creating a land price map nationwide.
At the same time, it is extremely important information for management agencies in the process of researching and promulgating regulatory policies, orienting consumption, promoting the market, and stimulating economic growth and development.
The implementation of the land use rights exchange will create more reliable methods, helping people, especially domestic and foreign investors, to conveniently search for information and make transactions.
“In the near future, if favorable mechanisms and policies are applied, transactions through the land use rights exchange will attract many participants, along with a large amount of social capital to invest in real estate, competing with stock and bond exchanges.
When the capitalization is large enough with a large number of market participants, attracting foreign capital, as well as effective investment products such as real estate investment funds (REITs), real estate securitization, housing savings funds, etc. will have conditions to develop," VARs commented.
Mr. Nguyen Van Dinh, Chairman of the Real Estate Brokerage Association, said that land use rights are a “commodity” of great value and wide coverage. Therefore, establishing a land use rights trading floor is not simple and cannot be done overnight.
In order for the land use rights exchange to truly be effective, without overlap or causing additional complicated administrative procedures for the people, a thorough and meticulous research and analysis process is required.
This work requires the participation and coordination of both state management agencies and leading experts. In particular, the participation and opinions of individuals and organizations with practical experience are very important.
Mr. Dinh also said that there are many questions that need to be answered appropriately to ensure that the establishment of a land use rights exchange is feasible and has a truly positive impact on the market.
From the perspective of a professional social organization, with the goal of contributing to the development of the Vietnamese real estate market in an increasingly stable, sustainable and transparent manner, VARS fully supports the policy of establishing a land use rights trading floor.
“However, the process of building and perfecting the operating mechanism of this trading floor needs to be carefully researched and evaluated before being submitted to competent authorities for promulgation at the appropriate time to ensure feasibility and bring maximum benefits to relevant parties,” Mr. Dinh proposed.
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