The Rise of Real Estate Market in Vietnam and the Need for Professional Brokers
Vietnam has experienced a booming real estate market in recent years, attracting thousands of individuals to join the industry as brokers. However, a significant number of these brokers are “amateurs,” lacking proper training and professional knowledge. This has resulted in a decline in market stability and a loss of trust among investors. To address these issues, new regulations have been introduced to tighten the activities of real estate brokers and to promote a more transparent and efficient market.
The Prevalence of Amateur Brokers
According to research data from the Vietnam Association of Real Estate Brokers (VARS), there are currently around 100,000 individuals working as brokers in Vietnam. However, only about 40,000 of them hold official certificates to practice as real estate brokers. The remaining majority operates as independent brokers without proper training or professional qualifications.
These amateur brokers are primarily focused on completing transactions quickly and taking advantage of market fluctuations. This often leads to unethical practices such as price manipulation, fraud, and misleading information. The consequences have been detrimental to the Vietnamese real estate market, undermining investor confidence and tarnishing the reputation of genuine brokers who provide reliable information and support.
Tightening Regulations for Real Estate Brokers
To address the challenges posed by amateur brokers, the amended Real Estate Business Law of 2023 was passed and came into effect on January 1, 2025. The law introduces several new provisions aimed at tightening the activities of real estate brokers.
Under the new regulations, individuals practicing as real estate brokers must obtain a professional certificate and work for either a real estate trading floor or a real estate brokerage service company. This prohibits independent brokerage, which was previously allowed under the 2014 Real Estate Business Law.
Furthermore, brokers will be entitled to receive commissions and remuneration only through official channels, such as real estate trading floors or authorized real estate brokerage service companies. This measure ensures transparency in financial transactions and helps prevent tax evasion.
Adapting to the Changing Landscape
The upcoming implementation of the revised Real Estate Business Law requires brokers to adapt quickly to the new legal framework. To thrive in this evolving market, brokers should take the following steps:
- Familiarize themselves with the new legal provisions related to real estate business to ensure compliance.
- Continuously enhance their professional skills and knowledge, including communication, negotiation, and market insights.
- Embrace technology and utilize management systems to streamline workflows, enhance professionalism, and improve transparency in their business operations. Platforms such as VARs Connect can be particularly valuable for real estate brokers.
- Active participation in industry events and professional organizations to stay updated on the latest developments and build relationships within the sector.
- Explore opportunities beyond specific property types or areas, opening up new avenues for growth in rapidly developing market segments.
Conclusion
The Vietnamese real estate market has witnessed tremendous growth, attracting numerous individuals to become brokers. However, the presence of amateur brokers has led to market instability and a loss of trust from investors. The amended Real Estate Business Law aims to address these issues by imposing stricter regulations on brokers. To succeed in this changing landscape, brokers must stay updated, improve their skills, embrace technology, and actively participate in industry initiatives. By doing so, they can contribute to a more robust and transparent real estate market in Vietnam.
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