Smart technology changes real estate pricing

Artificial intelligence (AI) is supporting many real estate valuation stages in Vietnam market.

Savills Vietnam has just released a report on the valuation field of increasing professionalism in Asia and Vietnam, which refers to the introduction of artificial intelligence (AI) that is changing some of the real estate valuation stages.

The report said that the real estate valuation market in Vietnam is still quite new, but it is gradually complying with international valuation standards. On the positive side, real estate valuation in Vietnam has begun to have some automated processes.

Currently, startups in the field of real estate technology have contributed to changing the field of pricing by applying modern technologies. The advent of artificial intelligence (AI) has helped valuation experts to increase efficiency and interact with price movements in the real estate market recently.

This technology contributes to market analysis by providing pricing solutions for less complex real estate segments. In contrast, more complex types of assets will require more interaction with people and in-depth expertise.

Ho Chi Minh City real estate market. Photo: Tran Quynh

Despite the intervention of intelligent technology, the whole process of valuation still requires some details and professional experience to produce a standard valuation results. The current difficulties can be mentioned as the management of valuation quality and the inconsistent market information, which has not reached a high level of transparency.

Currently, the Government has recognized this gap and has made efforts to improve land management and land databases through a project funded by the World Bank by 2021. The goal of This activity aims to improve the efficiency and transparency of land administrative services, through the development and implementation of a national multi-goal land information system (MPLIS).

The project includes the development and development of a land database, financial digitization of maps and land use permit documents; update and integrate cadastral data, land price data, land use planning, statistics and land inventory. However, this system may have limitations with flexible transaction structures and informal transfer values.

Another factor that greatly influences the value and real estate market is planning. The land use of all projects should follow the master plan; however, ineffective planning management has led to a disturbance of market value, thereby making market information inconsistent. This is particularly important because land use planning is often not publicly accessible. Today, provincial governments have begun to announce the planning of real estate projects.

Finally, inconsistent real estate valuation practices for different purposes also cause inconsistencies in information and data. There are many systems and levels of real estate valuation. For example, land prices for land compensation purposes, land financial obligations and market values ​​according to the International Valuation Standards Council (IVSC) all have different values.

Savills said that the real estate valuation market in Vietnam is currently facing many difficulties and challenges but at the same time has opened up the potential with new opportunities with the application of smart technology. In the context of the hot real estate market which has been growing for nearly half a decade, the gap in quality and property valuation standards in Vietnam is gradually approaching the region. can bring a large source of valuation demand in the future.

According to Ha Thanh