Vietnam’s real estate market is the least transparent property market in Southeast Asia
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Loading... - Katashi Ichikawa
- 11 Sep 2024
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Vietnam has been identified as the least transparent real estate market in Southeast Asia, according to the 2024 Global Real Estate Transparency Index by property consultancy JLL. Among the six Southeast Asian countries evaluated, Vietnam ranks 49th out of 89 countries and territories, trailing behind Singapore (13th), Thailand (32nd), Malaysia (33rd), Indonesia (40th), and the Philippines (45th).
The transparency of property markets was assessed based on a combination of quantitative data and survey results from 151 cities within these markets. The index evaluates transparency across six key factors: investment performance, regulatory and legal frameworks, market fundamentals, transaction processes, corporate governance, and sustainability. Markets were scored on a scale from one to five, with a lower score indicating higher transparency.
Vietnam was classified as a semi-transparent market, performing in the bottom half in areas such as investment performance, regulatory and legal frameworks, transaction processes, and sustainability. In contrast, Japan was noted as the most transparent market in the Asia-Pacific region, ranking 11th globally.
JLL highlighted that Asian markets showed the most significant improvements in transparency since 2022, with India being the top global improver. However, the report also pointed out that sustainability remains one of the least transparent factors worldwide, with limited mandatory building performance standards, public disclosure of energy use, and climate risk reporting outside the most transparent markets. Additionally, money laundering was flagged as a key concern.
Richard Bloxam, CEO of Capital Markets at JLL, emphasized that as investors increasingly prioritize transparency, markets with clear pricing and strong fundamentals are likely to lead the recovery in real estate liquidity.
