Real estate investors are all in a state of "suffocation", like "people about to drown".
A report from the General Statistics Office shows that in the first five months of this year, about 554 real estate businesses declared "bankruptcy", an increase of 30.4% over the same period last year.
Commenting on this figure, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARs), said that real estate businesses and investors have been in a state of "suffocation" for a long time, like "people about to drown".
Businesses and real estate investors are all in a state of "suffocation" for a long time, like "people about to drown". (Photo: SL)
“It can be seen that the authorities have removed many difficulties for the real estate market, gradually eliminating factors that reduce the weight, but real estate businesses still cannot rise up,” Mr. Dinh emphasized.
Speaking more clearly about this issue, Mr. Dinh said: The motivation to live makes businesses still try to "struggle and kick" and are ready to "cling" to any lifebuoy.
However, throughout the period since the beginning of 2022, the government has created lifebuoys to save the market and businesses. But they have not yet reached businesses to help them cling to and gain momentum to rise to the surface.
“The resilience of businesses is limited. If they do not “emerge” in time, they will certainly enter the stage of “choking on water and stopping breathing” at the same time,” said Mr. Dinh.
According to the VARs report, for brokerage businesses alone, the phenomenon of a decline in the number of real estate brokers has become a sweeping wave across a wide scale of real estate businesses, in all localities across the country, without exception.
According to a survey by VARS, the number of real estate brokers currently operating in the market is only about 30% -40% compared to the end of 2022. This phenomenon has been going on for a long time, with each wave gradually decreasing and showing no signs of stopping.
According to Mr. Dinh, the market has recorded a large number of real estate brokers having to quit their jobs for both active reasons, such as insufficient income to live on, and passive reasons, such as layoffs, temporary suspension of operations, bankruptcy, etc.
The number of real estate brokers who stay in the profession must flexibly apply all forms to survive such as diversifying the field, finding additional jobs, etc. The number of real estate brokers who quit the profession are mostly "newbies" and "amateurs" who have not been properly trained in the profession as well as the ability to respond to difficult market situations.
However, a bright spot is that over 95% of active brokers said they would continue to stick with the profession despite the market's difficulties. 100% of them wish to participate in specialized training courses during this time to master their expertise and gain more flexible improvisation skills in all situations.
The survey also shows that the majority of professional real estate brokers who are committed to their profession determine that they need to take the Brokerage Certificate exam.
However, due to a number of reasons such as the locality has not yet organized the exam, has taken the exam but has not passed... the number of brokers with certificates is still quite modest, accounting for about 35% of the number of brokers participating in the survey.
Impact on other industries
The decline of the real estate market also affects many other industries. In fact, the interconnected quadrilateral: Insurance - Banking - Securities - Real Estate are closely related to each other. If the difficulties of the real estate market are not handled promptly, it will cause bad consequences for the remaining sectors and the whole economy .
VARs report analyzed: in case the production value of the real estate industry changes by 10%, GDP will decrease by 1.247%; the processing and manufacturing industry will be most affected, decreasing by 0.861%.
Next are the following industries: agriculture , forestry and fishery (down 0.366%); tourism (down 0.352%); other services (down 0.348%); the industry with the lowest decrease is mining industry (down 0.210%)...
Source
Comment (0)