In the plan to fulfill the Prime Minister’s request on rectifying price manipulation, real estate speculation, and promoting social housing, the Ministry of Construction stated that in the second quarter, it will coordinate with the Ministries of Justice, Finance, and Natural Resources and Environment to research the securities trading model to digitize and interconnect land procedures. People can trade real estate, notarize, pay taxes, and register transactions in a digital environment.
At the same time, the Ministry of Construction is also studying a proposal for a pilot project for a model of a Real Estate and Land Use Rights Trading Center managed by the state in the second quarter of 2025 to increase transparency in the market.
According to experts, it is very challenging to implement these tasks.
Real estate transactions are more complex than securities transactions
Sharing with reporters, Mr. Nguyen Quang Huy, Executive Director of Finance and Banking, Nguyen Trai University, said that in principle, real estate transactions can be digitized but cannot operate under the same mechanism as securities.
Mr. Huy gave reasons for this, stating that real estate transactions have unique characteristics, including high transaction values and involving legal, planning, valuation, and financial complexities that are much more intricate than stock transactions.
“Low liquidity is due to the time-consuming process of transferring real estate, which involves multiple agencies. Each property has its own distinct features, making it impossible to standardize and trade in bulk like stocks.
Current laws do not allow transactions to be entirely conducted on a digital platform without direct confirmation from notary, tax, and environmental agencies. The market psychology also plays a role, especially with significant assets like real estate; buyers prefer to verify the property before finalizing the transaction,” said Mr. Huy.
 According to experts, establishing a real estate trading center without tight control can lead to “price inflation” and speculation. Photo: Hoang Ha |
The expert pointed out several barriers and risks associated with implementing online real estate transactions. These include legal risks due to inconsistencies in current laws, which can lead to disputes if not amended appropriately.
“There are also security risks, as hackers may attack, forge transactions, and steal information. Additionally, there are risks of market manipulation and fraud. Without strict control, “price inflation” and speculation may occur. Implementation costs are high, requiring significant investments in technology, data infrastructure, and staff training. Another challenge is property valuation, as each real estate asset is unique, making automatic valuation, as with stocks, impossible. Moreover, inter-agency coordination is necessary; if data is not interconnected, the transaction process will remain slow and inefficient,” analyzed Mr. Huy.
Difficult to prevent tax evasion and “price inflation”?
“It is impossible to establish an online real estate and land trading center with just the internet. We lack the necessary information infrastructure and data security mechanisms,” said Dr. Pham Viet Thuan, Director of the Institute of Economics, Natural Resources, and Environment in Ho Chi Minh City.
According to Dr. Thuan, establishing a real estate trading center in a digital environment would only facilitate statistical management, allowing intervention in provinces where prices have risen sharply. However, it would be challenging to use such a center to prevent tax evasion and “price inflation.”
However, the director suggested that if such a center is to be established, it should first be piloted in Hanoi and Ho Chi Minh City, as these are the two largest real estate markets. To pilot this project, there must be a link between the notary office, the land registration office, and the brokerage centers of enterprises to know the original price and the transaction price through the center to identify any speculation.
Meanwhile, Mr. Nguyen Quang Huy noted that to successfully bring real estate transactions to the digital environment, it is necessary to ensure synchronization in technology, legal matters, and the financial ecosystem. Standardize land data nationwide and build a transparent land management system.
Along with this, establish an official electronic real estate trading platform connected to the systems of notary, tax, and banking services. Improve the legal framework to recognize the legal value of electronic contracts and digital signatures. Utilize blockchain technology to store asset information and prevent fraud and forgery.
Additionally, develop an online payment and escrow system, integrated with banks to support digital mortgage lending.Â
“Digitizing real estate transactions is an inevitable trend. However, Vietnam needs to adopt a suitable implementation strategy, ensuring synchronization in technology, legal matters, and the market. We should learn from the successful models of countries like Estonia and Dubai and avoid the pitfalls of failed markets,” warned Mr. Huy.
According to this expert, there should be a trial period, possibly piloted in Hanoi and Ho Chi Minh City, before expanding nationwide. Invest in security technology, apply blockchain and AI to ensure transaction safety, and build an appropriate legal framework to build trust among the people.
“If we follow the right path, the model of real estate transactions in a digital environment can enhance transparency, reduce risks, and boost liquidity in Vietnam’s real estate market in the future,” shared Mr. Nguyen Quang Huy.
Nguyen Le
– 10:40 24/02/2025
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