Eliminate the "price inflation" of real estate by controlling the information

Would you like to tell us your assessment for the transparency of the real estate market today?

In general, the real estate market in 2017 and the first few months of 2018 are more positive, including more information on our projects and our control over the market has also been paid more attention to. Typically the Ministry of Construction is building the software to control the information of projects in the localities. They are very positive movements.

The disclosure of information served the interests of investors, so that the investors have launched the information actively. In previous periods, the information was misleading, this misleading has led to the risks that we are dealing with at the present, and they have become the big lessons. In the process of selecting, the investors have made better preparation and more professional steps. These factors have facilitated the disclosure of project information. We also hope that with investors efforts, the market will have more information, and information will be also more complete.

Why are there expectations? Because, the information is only in the form of propaganda information for products and projects now, but it is not the information to ensure transparency. To ensure transparency, the information needs specific requirements. Although the information on the project has helped the consumers access the projects, but they need to have the more transparent, complete and clearer information.

The Minister of Construction acknowledged that the real estate market had not developed synchronously, unsustainably, and it had still the potential risks, lack of transparency, a part of the market developed spontaneously and was under the control of the benefit of groups. How do you see this?

This is an objective phenomenon in the market economy, which is a derivative phenomenon in the development of this market. We want the market to develop in the standard and positive way, but we cannot say no negatives. The phenomenon of "price inflation", hiding the information deliberately are the negative phenomenon..., but it is objective in the market. The objective point is that the process of development has the opportunities to make a profit, no one controls them, and they hide information to sell products, or take advantage of arising waves to “inflate price” and welcome the waves. But these waves are the objective factor of the market and if there is no wave, their “price inflation” will not effect it. The people working in this sector call it professional ethics. Doing business has to see the overall picture that making profits must be on the principle of ensuring the social objectives, not distorting the image, not manipulating the market. In fact, these phenomena are not common but have taken place, and need to be eliminated by controlling information. For example, when we announce the price of land in specific areas, (no matter how “inflate” to not be.) the price can not be “inflated”. (it should not be a matter of “inflate”.)?

Besides, in the process of moving the market, some products are also received positively by the market, creating the wave. The businesses leverage is to push higher waves, but this has two sides. Because they are playing with fire, and unless careful, the fire will burn them, because the waves are limited, (unless seeing the limit, the market will see them very ugly, chance and will knock him to get out of the game immediately), if they do not see this limit ò waves, the market will assess them to be the bad people and opportunists, and will knock him to get out of the game immediately. Therefore, the big investors do not have the phenomenon of price inflation, only the distributors take advantage of opportunities, push the "wave" behind the investors to "earn more" after the transaction. Therefore, it is necessary to warn the customers to be more alert with the mutant products, have to consider the overall picture, evaluate objectively before deciding.

The information system on housing and real estate market is expected to be put into use in early 2018. Dear Sir, when putting into operation, whether this system has taken on the big responsibility which is to clear the market as expected or not? If the input information is incorrect then how will it be effective?

The software drafting and establishment agency itself on the information control of the projects raises these questions. The agencies of consulting and establishing the software have many unanswered questions. But it is not a reason to not operate. I think the most positive thing is to operate it, our goal of operation is to give us the opportunity to control, how to control is the real process. On the basis of that fact, from time to time, we assess to decide whether additional regulations or sanctions are needed to provide the highest accurate information and the most perfect information system. Now, there are no specific regulations on dealing with when providing wrong information, one is the declaration enforcement, but how about if not declared… these are left open, because as the first step is for the investors reporting under their responsibility. Therefore, it is necessary to coordinate with the social organizations and professional organizations to mobilize, monitor and supervise, thereby, there will be the additional regulations to make it easier, to control more effectively. As far as I know, the software structure to synthesize the project information has so much content that not all information providers can operate it easily, as well as the information users is unlikely to be able to filter out the information to evaluate. This is the first step, I have many worries, but I think what is very necessary, is the first job in management objectives, for transparency the real estate market, so that, it must apply high technology instead of supervising each project by the authorities. This is a positive direction. I hope the State management agencies, the social organizations, the enterprises have the determination and responsibility to achieve the management objectives, transparency of the real estate market. Achieving this makes benefits for both the managers and the investors. When managing well, the investors benefit first, because when having enough information, the investors develop the projects and avoid the unknown.

Dear Sir, what is the role of the Vietnam Real Estate Association in the process of transparency of the real estate market, please?

I think that deploying the update information software of the Ministry of Construction is a very necessary solution. However, deployment should be accelerated, because this is an urgent need for the market. In order to control the real estate market well, firstly, it must control the information and then the products and other factors moving in the market. Now, the information has not been updated fully, accurately, and has not secured the management requirement of the State. This is the responsibility of management agencies of the State and localities. The Vietnam Real Estate Association itself does not have enough sanctions, conditions, and also does not function to perform this task. However, the Real Estate Association will coordinate, mobilize the enterprises, the investors to do well in this task. At the same time, the Association also has its own channel to control the information of investors to find out wrong information, provide the State management agencies and warn the investment owners to adjust their investment.

Thank you Sir!