How will the 4.0 technology revolution affect real estate valuations?

Artificial intelligence (AI) is supporting many stages of real estate valuation in the Vietnamese market.

The real estate valuation market in Vietnam, though still relatively new, is gradually complying with international pricing regulations, the report said. On the positive side, real estate valuations in Vietnam have already begun to have some automated processes.

Currently, startups in the real estate technology sector contribute to changing the valuation field by applying modern technologies. The advent of artificial intelligence (AI) has helped valuation professionals increase efficiency and interact with price movements in the real estate market in recent times.

This technology contributes to market analysis by providing pricing solutions for less complex real estate segments. In contrast, more complex asset types will require more human interactions and specialized knowledge.

Despite the intervention of smart technology, the whole appraisal process still requires some expertise and expertise to deliver a standard valuation result. The current difficulties can be mentioned as the management of the quality of pricing and the inconsistent market information, which has not reached high transparency.

The Government has recognized this gap now and has taken action to improve the management of land and land databases through a project funded by the World Bank until 2021. This activity aims to improve the efficiency and transparency of land administration services, through the development and implementation of a National Multi-Purpose Land Information System (MPLIS).

The project includes the construction and development of land databases, the financial digitization of maps and land use permit records; updating and integrating cadastral data, land price data, land use planning, land statistics and inventories. However, the system may have limitations with a flexible transaction structure and informal transfer values.

Another factor that greatly influences the real estate market and values ​​is planning. The land use of all projects should follow the master plan; However, the ineffective planning management has led to market value disturbance, thereby making market information inconsistent. This is especially important as land use planning is often not publicly accessible. Nowadays, provincial governments have begun to publish planning of real estate projects.

Finally, inconsistent real estate valuation practices for different purposes also cause inconsistency in information and data. There are many systems and levels of real estate valuation. For example, the land price calculated for the purpose of land compensation, the purpose of calculating land financial obligations and the market value according to the International Valuation Standards Council (IVSC) has different values. together.

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