Problems in the real estate market

In 2020, over 300,000 real estate transactions were wrapped up, however, the real transaction price in the secondary market is difficult to determine. The prices offered by the state agencies are often lower than the actual prices agreed upon by the buyers and sellers. Therefore, it is essential to build a relatively accurate barem.

In the context that real estate prices in 2021 are expected to increase by 10 per cent over the previous year, said Nguyen Van Dinh, deputy general secretary of the Vietnam Real Estate Association (VNREA). It is hard to determine what is the real price and what is the "virtual price".

According to economist Dr. Dinh The Hien, the phenomenon of speculation and price “blowing up” is a major drag on the market when the sellers and the buyers do not know the real value.

Every day on commercial pages, thousands of posts include uncontrolled content, tens or hundreds of advertisements cause information confusion.

Property prices have been continuously rising.

Lack of information and transparency on prices hinders the development of the Vietnamese real estate market.

Real estate appraisal - Solution to help the market find the real value

In order for the market to be transparent on prices, it is necessary to have clarity and accuracy in real estate appraisal. Many countries have studied and focused on appraisal for many decades.

In the UK, USA, France, Sweden, Singapore and more, to reduce real estate speculation, the government has imposed progressive taxes on the value of land. In many countries, real estate valuation is considered as a management tool of the state and a popular service in the economy.

In Vietnam, real estate valuation is still facing many difficulties such as lack of information about the planning, the legal status along with specialized and accurate price reference tools.

Technology - Key to solve problems in the real estate market

In the past two years, Vietnam has continuously been highly evaluated in the JLL Global Real Estate Transparency Index (GRETI). Steady advances of the two metropolises have helped Vietnam reach the 56th place in 2020 ranking released by market researcher Jones Lang LaSalle (JLL). Following on from steady advances made over the last two surveys, these changes have helped to push Vietnam into the ‘Semi-Transparent’ tier.

Proptech in Vietnam is developing and expanding on the back of strong momentum in the Vietnamese real estate market, due to its benefits in improving accuracy and speed, as well as cost savings and convenience. Digitization also enables new ways of working around the collected data, and that its data processing and analysis need to be addressed.

Cenhomes.vn proptech platform has just been acquired by Cen Land. This pioneer platform uses Big Data - building a large database of real estate products including address, area, photos, information on properties, planning map, etc.

Price chart by area is shown on Cenhomes.vn app

Cenhomes.vn database is provided by users/ community, including realtors, banks, appraisal companies, notary offices and the Big Data. Along with the heat map showing the prices by location, users can easily track property price fluctuations over time, the number of transactions, just to name a few.

With valuation database from Cen Value - Top 3 appraisal company in Vietnam, price information is processed and given by the AI ​​system with high accuracy. This is considered to be a useful and effective tool for credit institutions and banks to look up, evaluate real estate products, and minimize risks when making loan decisions.

Thanks to advanced technology, real estate valuation will minimize interference from subjective factors and make the market increasingly transparent.