Vietnam’s real estate market ranked low on transparency

According to JLL (Jones Lang Lasalle) and LaSalle Investment Management, Vietnam ranked in the bottom four countries in Asia Pacific for transparency on the Global Real Estate Transparency Index (GRETI) 2016.

Reportedly, transparency index of Vietnam’s real estate market is 3.49, being ranked 68 out of 109 countries and territories in Asia, South America and Africa. In Asia Pacific, other low-ranking countries include Myanmar, Macau and Sri Lanka, while the highest transparency levels are occupied by Australia, New Zealand, Singapore and Hong Kong.

JLL’s GRETI report is based on a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle Investment Management across 109 countries and territories.

Property valuation in Vietnam is difficult without the information transparency.

The limited access to information on planning and the lack of a market database were holding back local property valuation. The data that helps real estate investors make decisions is only based on the latest financial statements. Home buyers and investors depend mainly on information from property companies or brokers. 

Due to the lack of transparency and accurate information, the valuation of commercial properties like office buildings, shopping malls and hotels is often hard to calculate. 

Therefore, the market needs more transparent and regularly updated supporting data for a accurate valuation in the constantly changing property market.

The GRETI report said regulatory reforms will be essential for further progress in transparency.  Lots of governments appear to be taking steps forward. Vietnam, for example, has proposed creating a national database on real estate in an effort to enhance the accuracy and availability of market information.

In the context of poor market transparency as today, JLL expects the contribution of the professional appraiser. This will help investors make decisions that promote the best investment efficiency. In addition, this is also an effective way to improve the transparency of Vietnam’s real estate market.

Source: Tuoi tre online