index to debut by end of ‘08
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
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.
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