However, experts warn that without strict regulations and integrated systems, online platforms could enable price manipulation and speculation.

Integrating digital transactions with legal and financial systems

In response to Prime Ministerial directives aimed at curbing real estate speculation and promoting social housing, the Ministry of Construction has outlined a plan for Q2 2025.

The initiative includes collaborating with the Ministries of Justice, Finance, and Natural Resources & Environment to study stock exchange models for real estate digitalization.

Under this digital transition, citizens would be able to conduct real estate transactions, notarization, tax filings, and property registrations online.

Additionally, the ministry is working on a pilot project to establish a State-managed Real Estate Trading Center, aimed at enhancing market transparency.

Challenges in digitizing real estate transactions

According to Nguyen Quang Huy, Executive Director of the Faculty of Finance and Banking at Nguyen Trai University, real estate trading cannot function like stock exchanges due to its complex legal, financial, and regulatory aspects.

"Unlike stocks, real estate transactions involve high-value assets, legal approvals, zoning laws, and valuation complexities. The low liquidity of real estate is due to lengthy transfer procedures and multi-agency involvement," Huy explained.

Key challenges include:

Legal constraints: Current laws do not support fully digital property transfers without in-person notarization and tax declarations.

Security risks: Online platforms may fall prey to hacking, fraudulent transactions, and identity theft.

Market manipulation: Without strict oversight, digital platforms could inflate prices and encourage speculation.

High implementation costs: Developing secure digital infrastructure and training personnel requires substantial investment.

Property valuation difficulties: Unlike stocks, real estate properties are unique, making automated pricing highly challenging.

Is an online property exchange feasible?

Dr. Pham Viet Thuan, Director of the Institute for Natural Resources and Environmental Economics (Ho Chi Minh City), argues that Vietnam currently lacks the necessary digital infrastructure for such a platform.

He suggests trial programs in Hanoi and Ho Chi Minh City due to high transaction volumes in these cities. However, effective integration with notary offices, land registries, and real estate firms is essential to prevent price inflation and tax evasion.

To successfully digitize property transactions, Vietnam must:

Standardize nationwide land databases for transparent electronic management.

Establish official online real estate exchanges linked to notary offices, tax authorities, and banks.

Enhance legal frameworks to recognize electronic contracts and digital signatures.

Implement blockchain technology to prevent fraud and tampering.

Develop secure online payment and mortgage processing systems integrated with banks.

"Digital real estate transactions are an inevitable trend, but Vietnam must adopt a phased approach, ensuring technological, legal, and financial readiness. Learning from successful models like Estonia and Dubai, while avoiding failures in other markets, is crucial," Huy concluded.

If executed properly, an online real estate marketplace could enhance transparency, minimize risks, and boost liquidity in Vietnam’s property sector.

Nguyen Le