Ho Chi Minh CityA townhouse in Can Gio has just been divided into 1,000 parts, attached with a Blockchain code for sale, the price of each part is 3.1 million VND.
In the midst of the fourth epidemic, when direct real estate transactions in Ho Chi Minh City were suspended due to the blockade and distance, Moonka company offered to sell a red book townhouse (with a certificate of right of ownership). land use and property ownership) in Can Gio district by Blockchain technology. This townhouse is divided into 1,000 parts, the asking price for each part is 3.2 million VND. When the transaction is successful, the investor is refunded 100,000 VND, the real value of part of the house is 3.1 million VND.
To participate in the joint purchase of assets using this technology, investors must register for membership on the enterprise’s online exchange system, then top up via e-wallets, thereby converting to the company’s tokens. Moonka to buy real estate. Each customer is granted an online account with a Blockchain code to manage investment rates. The red book and legal documents of the house are listed online by the business.
Mr. Hoang, an investor who spent more than 9 million dong to buy 3 parts of a house with this Blockchain technology, said that 10 years of trading real estate in Ho Chi Minh City, many times contributed capital of 500-700 million dong, even billions to buy a house. Investing in real estate with friends and family. However, when it was time to exit the goods, it was difficult because of the great value of the property, each time, each person had different expectations, it was difficult to find a common voice.
“Meanwhile, buying real estate is only a few million dong, partly using Blockchain technology for a similar experience to buying securities. I hope the market develops and increasingly perfects the legality for this model so that people with little capital have less capital. safe real estate investment opportunities,” Hoang shared.
Exchange with VnExpressMr. Nguyen Tan Phong, Chairman of the Board of Directors of Moonka Company confirmed, the house offering using Blockchain technology was completed at the end of August. There are 32 investors out of the total community of hundreds of Moonka members who are eligible. trade at the time of sale. Statistics on the system, there is a case that an investor has bought up to 187 parts. It can be roughly understood that this is a form of retail real estate with a small amount of a few million dong according to the standard of 1,000 parts at a wholesale price (listed price).
Mr. Phong affirmed that the house offered for sale using Blockchain technology is an existing property, with complete legality and transparency to all investors. The legal basis for the property sale is made in the form of an authorized representative in the name of the red book for the group of real estate buyers (in case the buying group authorizes the company). Because it is done on the Blockchain platform, every transaction is recorded accurately on the system in real time and authenticated by code. The payment vouchers, taxes, fees … the buyer can access with the account that has been granted.
Answering a question about liquidity (output) for customers, Mr. Phong said, investors can resell existing assets on the company’s exchange (currently about 300 investors), mortgage assets to borrow capital if needed, executed in real time 24/7, after the sell order is successfully executed, the money is transferred to investor’s account as soon as the order is completed. This real estate transfer will be conducted by online voting, when investors who want to sell the house have a majority (51%), the property will be sold. Profits are distributed according to the investment rate.
Survey of VnExpress shows that the real estate subdivision model has been popular since 2020 for properties formed in the future, but the application of Blockchain technology to sell existing and complete real estate is still quite new.
Typically, last year, a real estate company based in Hanoi also launched a similar investment package for the apartment product line. Investors can participate in this fundraising channel through registration, opening an account on the app and technology platform developed by the investor.
The minimum amount to invest is 100 million VND, many people can invest in the same apartment. The investor offers 2 output options for capital contributors. The first option is to resell this investment to get the principal and minimum profit committed. Option two, voting to sell the apartment on the market to collect principal, fixed profit and profit from the sale of real estate within the specified time.
A real estate business based in District 3, Ho Chi Minh City also divided future apartments in Dong Nai to offer to investors on the company’s app.
Recently, a real estate enterprise based in the East Saigon area also has a plan to subdivide real estate for sale by shares. However, due to careful preparation of technology infrastructure and review of legal regulations, this unit has yet to proceed.
Mr. Nguyen Loc Hanh, General Director of Ngoc Asia Real Estate Investment Joint Stock Company, assessed that the model of dividing real estate into shares for sale is on the rise in Vietnam. Because it is a new trend, this way of raising capital needs standard and typical pilots to evaluate the efficiency of the market.
According to Mr. Hanh, along with the application of high technology, the key to the real estate subdivision model is complete legality. Therefore, it is important that the properties offered for sale have full legal records, publicity and transparency. In addition, it is also necessary to improve the legal basis for this model to encourage professional practice, rectify the units that do not perform well and protect the interests of buyers.
Previously, the Ho Chi Minh City Real Estate Association (HoREA) had forecast that Vietnam could learn the model of asset encryption using Blockchain technology to raise capital. The association assesses that if the legal and technological factors can be ensured, this approach can open up a more flexible capital raising market than before.
From HoREA’s point of view, the asset division model to invite investment in Vietnam should be studied in the direction of real estate securitization. The way to do it is to encrypt the value of real estate with Blockchain technology and use Token code (digital signature in the form of OTP code) to conduct capital raising transactions.
This is a new investment model with a similar operating method to Real Estate Investment Trusts (REITs) applying Blockchain technology to the real estate sector. This form opens up the world of asset cryptocurrencies for those with meager financial resources to participate in the market. This approach can be considered as a complementary and promising alternative to traditional real estate investment methods that have gradually become obsolete.
HoREA cited that in New York, US, any investor can own a part of a luxury building worth more than 30 million USD located in the center of Manhattan district thanks to the form of asset encryption with Blockchain technology. The Investment Fund will create a Digital Token (using Token device or Token software; Token code is valid for one-time use only and user must decide within 60 seconds).
Digital Token represents a part of the value of the building and is traded like a stock and investors in the world can own a certain percentage of this building corresponding to the amount they bought the Token. Each share token is worth 1 USD. Thus, there will be about 25 to 30 million people who can own part or all of this building for 1 USD per share (or one ticker).
In the US, Blockchain Technology Company Fluidity and Real Estate Broker Bro Pele have created a contract that governs and ensures the truthfulness of both the seller and the buyer of real estate tokens. With Blockchain technology, it is possible to ensure transparency, smoothness, safety and solve the problem of information between buyers and sellers, thereby promoting liquidity in the real estate market. Besides easier access to customers, investors can sell these tokens to raise funds for project development. Not to mention the bigger benefit is that the value of this property often increases over time and the laws of the market.
According to HoREA’s assessment, the real estate cryptographic activity is still in its infancy, so it has not been opened to the public yet, so it has not had much impact on financial activities and the real estate market. However, with the continuous improvement of technology, this model will certainly bring a lot of potential, affecting the way real estate business and property ownership in the thriving digital age. strong as it is today.