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Arguments arise as properties required to be traded on exchange

Controversy has arisen over the Ministry of Construction’s draft of the amended law on real estate trading as it requires real estate products to be traded on an official exchange.
High-rise buildings mushroom in HCM City. – SGT Photo: Viet Dung

Though the 2014 law on real estate trading has created positive impacts, it cannot keep pace with the real estate market development, and problems often crop up, the Ministry of Construction said.

The ministry is garnering feedback on the draft of the revised real estate trading law. 

Trading property products on an exchange is necessary, as the future of the real estate market would be dynamic, said Pham Thanh Hung, vice chair of Century Group Corporation. 

It would be legitimate and safer for home buyers and sellers to sell houses without land use right certificates through an exchange, Hung said, adding that the exchange also enables buyers to buy a house on deferred payment, thereby proving its effectiveness. 

“Earlier, developers could operate their own trading exchange. However, there was trouble as a stamp represented two legal entities: the developer and the exchange. If the new regulations are adopted, there should be a distinction between the developers and the exchange,” Hung said. 

On the other hand, the HCMC Real Estate Association (HoREA) said trading on an exchange should be encouraged but not mandatory.

Meanwhile, land use rights and assets attached to the land should be placed under the law on real estate trading, the association suggested.

Requiring real estate trading via an exchange would be unjust as it would provide the exchange with special privileges while hampering the rights of developers, said Le Hoang Chau, chair of HoREA.

According to Ngo Quang Phuc, general director of Phu Dong Group, such regulations are unnecessary as clients can buy directly from developers at a lower price. The key thing is how to let buyers access products that are eligible for sale, Phuc said.

The draft will be submitted to the National Assembly during the fourth meeting slated for October 2022 and considered for approval at the fifth meeting in May 2023, the ministry reported.

Source: Saigon Times

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