“The index for the real estate market will be compiled based on actual deals between people in each area, with specific forms of real estate so investors and people can use it for reference and it can be used for managing the market,” said Nguyen Manh Ha, Head of the Housing Development Agency under the Construction Ministry.
What criteria will the real estate market index be based on?
The Construction Ministry is building an index on the real estate market to guide the market and to prevent property “fevers” from occurring when everyone jumps into the market. The Ministry will update information and publish the index periodically, like the consumer price index (CPI).
This index will be compiled based on actual deals in each area, for specific types of real estate to show the changes of prices from one moment to the next, not the prices fixed by investors.
Will the Ministry develop different indexes for each area or only one for the whole country?
It is difficult to make an index for the whole country. Because of differences in development, real estate markets in different provinces are different from each other. So we can’t make a common index for all.
We plan to develop an index for each area, firstly for HCM City and Hanoi. Other provinces and cities will announce their indexes themselves for investors and people as reference.
So each market will have its own index?
There may be an index for a basket of goods or an index for each type of property, for example the indexes for luxury, average, low-cost houses, apartments, offices and hotels, etc.
But how can the Ministry collect accurate and reliable information in the current situation?
We are building a real estate transaction system under the Law on Real Estate Business. These trading floors will be managed by real estate firms and recognized by management agencies.
We will consider the scale and prestige of these floors to choose the best to make a group of prestigious floors. Information from these floors, from the market, and from management agencies will be used to compile the index.
Will the index be released monthly, quarterly or yearly?
We will firstly announce it once a month.
What is the biggest difficulty for building a property index?
Compiling information. But I hope that this difficulty will be gradually solved when we have a system of estate trading floors.
When will the index be released?
We plan to announce the indexes for HCM City and Hanoi this September.
Hanoi is large so will the Construction Ministry have different prices for different districts?
We can divide Hanoi into several regions, for example the western, the eastern and the central regions of Hanoi. We will have indexes for each region. However, we can’t have detailed and absolutely accurate indexes for all regions.
What criteria will the real estate market index be based on?
The Construction Ministry is building an index on the real estate market to guide the market and to prevent property “fevers” from occurring when everyone jumps into the market. The Ministry will update information and publish the index periodically, like the consumer price index (CPI).
This index will be compiled based on actual deals in each area, for specific types of real estate to show the changes of prices from one moment to the next, not the prices fixed by investors.
Will the Ministry develop different indexes for each area or only one for the whole country?
It is difficult to make an index for the whole country. Because of differences in development, real estate markets in different provinces are different from each other. So we can’t make a common index for all.
We plan to develop an index for each area, firstly for HCM City and Hanoi. Other provinces and cities will announce their indexes themselves for investors and people as reference.
So each market will have its own index?
There may be an index for a basket of goods or an index for each type of property, for example the indexes for luxury, average, low-cost houses, apartments, offices and hotels, etc.
But how can the Ministry collect accurate and reliable information in the current situation?
We are building a real estate transaction system under the Law on Real Estate Business. These trading floors will be managed by real estate firms and recognized by management agencies.
We will consider the scale and prestige of these floors to choose the best to make a group of prestigious floors. Information from these floors, from the market, and from management agencies will be used to compile the index.
Will the index be released monthly, quarterly or yearly?
We will firstly announce it once a month.
What is the biggest difficulty for building a property index?
Compiling information. But I hope that this difficulty will be gradually solved when we have a system of estate trading floors.
When will the index be released?
We plan to announce the indexes for HCM City and Hanoi this September.
Hanoi is large so will the Construction Ministry have different prices for different districts?
We can divide Hanoi into several regions, for example the western, the eastern and the central regions of Hanoi. We will have indexes for each region. However, we can’t have detailed and absolutely accurate indexes for all regions.
Source: Vietnam Net
Comments