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Property index to debut by end of '08

Update: August, 18/2008 - 00:00

Property index to debut by end of ‘08

(19-08-2008)

HA NOI — The Ministry of Construction has announced plans for a real estate market index (REMI) to regulate the domestic market by the end of this year.

The index will show official fluctuations of the real estate market, by updating market information including prices, investors, products, trading times and trading volumes, according to the ministry.

Initially, the index will be applied to leased apartments, offices and hotels in HCM City starting in the fourth quarter of this year. The index will later be upgraded and applied nation-wide.

Pham Sy Liem, vice chairman of the Viet Nam Construction Association, said that the ministry will develop the index for each product in the market, each locality nation-wide, and then build a general index for the entire country suitable to the characteristics of the domestic property market.

The index needs careful research, analysis and foreign input, he said.

Tran Minh Hoang, chairman of Vinaland Invest Corp’s management board, said that without the index, many customers and investors cannot access basic information about the market for reference when checking changing property values. He noted that because of this, many investors were buying property at elevated prices.

Hoang said that HCM City authorities should build indices for regions in the city as a better way to enhance transactions on the property market.

Vinaland has started to build a price index according to area, product and trading volume for urban areas in Sai Gon’s south and east.

Truong Thai Son, deputy general director of the Hoang Quan Real Estate Company, said the country has had some district-level real estate indices built by property companies for their management, business and interest.

He noted that a national real estate index would help the property market become more transparent.

Low-scale customers, investors, even State management offices and banks need an index to reference in real estate transactions, he said, adding that the index would boost development of the real estate market and help banks balance credit to meet supply and demand. — VNS

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