“Vietnam has moved up five places to rank 56th out of 99 economies in this year’s real estate transparency index”
Jones Lang LaSalle (JLL), the global real estate services firm, along LaSalle Investment Management has released its biennial Global Real Estate Transparency Index report and says that Vietnam has continued to improve its real estate position and credits the country regulatory reforms, enhanced market data and sustainability initiatives as keys to future real estate growth.
The report says that, "Vietnam has made further progress on the regulatory front with government bodies tightening their oversight to ensure rules and regulations are being adhered to in areas such as land-use planning and lending standards.”
"The country’s strong economic prospects have drawn significant interest from both occupiers and investors, and this has led to increased competition and service offerings from property management companies."
JLL’s report measures 99 countries and territories across the globe and its rankings are based on six sub-indices: investment performance; market fundamentals; listed vehicles; regulatory and legal indices; transaction processes; and sustainability.
Each country that was measured was ranked a scale of 1 to 5 with 1 the highest score. Vietnam scored an average of 3.38 and the country’s real estate market was included in the "Semi-Transparent" tier alongside the Philippines, India and Indonesia.
Despite improvements, Vietnam's real estate transparency was lower than Southeast Asian peers Singapore (14th), Malaysia (29th), Thailand (33rd), Indonesia (40th) and the Philippines (44th).
The report also said transparency across Vietnam’s real estate markets has steadily improved in recent years with better access to market information, increased availability of market data, and improved enforcement of planning and land use regulations.
However, drawbacks for the country include long delays in receiving administrative approvals, legal issues related to both corporate and personal ownership of real estate projects and real estate sustainability issues.
JLL says in its report that if Vietnam is able to overcome the above issues that its rankings will continue to improve and that it could easily overtake the rankings of Malaysia, Thailand, Indonesia and the Philippines.