Real estate investors simultaneously fell into a state of "suffocation", like "a person about to drown".
According to the General Statistics Office, in the first 5 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 number, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARs), said that businesses and real estate investors simultaneously fell into a state of "suffocation" for a long time, like "people about to drown".
Businesses and real estate investors simultaneously fell into a state of "suffocation" for a long time, like "people about to drown". (Photo: SL)
"It can be seen that the authorities have removed a lot of difficulties for the real estate market, gradually removed the factors that reduce the weight, but real estate businesses still cannot emerge," Mr. Dinh emphasized.
To be more specific about this issue, Mr. Dinh said: The life force makes businesses still try to "struggling and kicking" and ready to "cling" to any lifebuoy.
However, throughout the period since the beginning of 2022, the government has created buoys to save the market and businesses. But they have not yet reached businesses to help businesses cling to, creating momentum to the surface.
"The resistance of businesses is limited, if they do not "rise" in time, they will definitely enter the phase of "choking water, stopping breathing" simultaneously, "said Mr. Dinh.
According to the report of VARs, for brokerage businesses, the decline in the number of real estate brokers has become a sweeping wave on a large scale across 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 takes place over a long period of time, with each phase decreasing, gradually decreasing and still showing no signs of stopping.
According to Mr. Dinh, the market recorded a large number of real estate brokers who had to quit their jobs for both active reasons, such as inadequate and passive income, dismissal of enterprises, temporary suspension of operations, bankruptcy of enterprises, etc.
The number of real estate brokers who stay with the profession must flexibly apply all forms to be able to survive such as diversifying fields, looking for more jobs… The majority of real estate brokers who quit their jobs belong to "newbies" and "hands-on" who have not been properly trained in the profession as well as the ability to improvise in difficult market situations.
However, a bright spot was recorded that over 95% of active brokers said that they would continue to stick with the profession despite the difficult market. 100% of them want this time to participate in intensive training courses to master their expertise and have more flexible improvisation skills in all situations.
The survey also shows that the majority of professional real estate brokers who have a sense of belonging to the profession have determined that they need to take the brokerage certification exam.
However, due to a number of reasons such as the locality has not held the test, participated in the exam but did not pass ... so the number of brokers with a new certificate stopped at a rather modest level, 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 connected quadrilateral includes: Insurance - Banking - Securities - Real estate are closely related to each other. The difficulties of the real estate market, if not handled in time, will have bad consequences for the remaining sectors and the whole economy.
The report of VARs analyzes: in case the production value of the real estate industry changes by 10%: GDP will decrease by 1,247 %; The processing and manufacturing industry was the most affected, down 0,861%.
Followed by the following sectors: agriculture, forestry and fishery (down 0,366 %); tourism (down 0,352%); other services (down 0,348%); The industry most affected by the decrease is the mining industry (decreased by 0,210%)…
