A real estate transaction centre will serve as a public platform for electronic transactions, enabling efficient management of real estate deals. — VNA/VNS Photo

HÀ NỘI — The Government has tasked relevant ministries to research and propose a pilot project for establishing a State-managed real estate and land use rights transaction centre, designed to function as a digital trading platform.

This model, outlined in the Prime Minister's Official Dispatch No. 03/CĐ-TTg, is expected to improve the transparency and efficiency of the real estate market by leveraging digital tools.

According to the Prime Minister's dispatch, the real estate transaction centre will serve as a public platform for electronic transactions, enabling efficient management and provide oversight of real estate deals.

This model will focus heavily on transparency, with an emphasis on digitalisation, data interconnection and control of all activities related to real estate transactions.

The goal is to create a safer and more efficient market for all participants, while ensuring that the Government can effectively monitor the sector.

The Ministry of Construction has been tasked with leading the research and implementation of the project, with a report to be submitted to the Prime Minister in the second quarter of 2025.

This initiative also aims to address some of the persistent issues in the real estate sector, such as price manipulation, speculation and inadequate oversight of real estate construction investment projects, creating a healthier real estate market.

Furthermore, conducting transactions through a digital platform will provide greater publicity and transparency, thus minimising risks and protecting the rights of participants.

The State managed real estate and land use rights transaction centre is expected to fulfill several important functions on managing real estate transactions, tax collection and issuing land use right certificates.

By managing transactions electronically, the Government can more easily monitor the market, improve tax collection efficiency and save time and costs for traders, much like the process of trading on a stock exchange.

While the proposal for a digital real estate transaction centre is promising, experts warn that the implementation of such a system faces significant challenges.

Key concerns include the need for adequate human resources, reliable data infrastructure and advanced technology.

Legal and regulatory frameworks will also need to be updated to ensure the safety and effectiveness of digital transactions.

Director of the Việt Nam Real Estate Research Institute Bùi Văn Doanh emphasised that for the system to be effective, the legal framework must be robust and clear.

Regulations around personal information security, as well as strict penalties for violations, must be established to build trust among users.

When implemented correctly, with strong monitoring mechanisms in place, this digital real estate trading floor could become a powerful tool for State control and the sustainable development of the industry.

PhD Ngô Trí Long, an economic expert, agreed with the necessity of the digital model, stating that it will be an inevitable trend in the future. However, he believes that a comprehensive strategy –incorporating technology, legal reforms and market factors – is essential for success.

He suggests starting the implementation in large cities like Hà Nội and HCM City before expanding the system nationwide.

For the proposed transaction centre to be secure and reliable, it will require the integration of advanced technologies, such as blockchain, artificial intelligence (AI) and multi-layer security systems. These technologies will help ensure the safety of transactions and the integrity of the digital platform.

Deputy general Director of Batdongsan.com.vn Nguyễn Quốc Anh highlighted the potential of this model to centralise information, closely manage market transactions and promote transparency.

However, he pointed out that ensuring the effectiveness of the system will require creating strong incentives for participants and ensuring compliance with regulations.

The system must also accommodate the high volume of real estate transactions, particularly in major cities.

Additionally, transitioning to a mandatory digital platform may require users to adjust to the new system. As such, incentives and strong enforcement measures will be necessary to prevent parties from circumventing the law.

In line with this digital initiative, the Ministry of Construction has been assigned to work with the Ministry of Public Security to update and complete the national database system on housing and the real estate market.

This system will be integrated with other national databases on population, land, investment, and construction activities. The aim is to ensure the accurate and timely reflection of legal statuses of real estate projects, properties eligible for business, and real estate inventories.

The Ministry of Construction is also tasked with collaborating with the ministries of Justice, Finance, Agriculture and Environment to study a securities trading model to facilitate digital transactions in real estate, from notarisation to tax and land transaction registration.

This initiative, which is expected to be fully operational this year, will be a key step toward modernising the real estate market and ensuring its long-term sustainability. — VNS