Small and medium-sized real estate businesses:

The real estate market is entering a new phase of development with increasingly high demands for financial capacity, transparency, and product quality. Intense pressure for consolidation, along with fluctuations in capital, legal frameworks, and purchasing power, is forcing small and medium-sized enterprises (SMEs) in this sector to face fierce competition...

The real estate market is undergoing a strong cleansing process. Photo: Nhat Nam

Challenges from many sides

The restructuring process of the real estate market is becoming increasingly evident. Businesses with good land reserves, strong financial capabilities, long-term development strategies, and the ability to adapt quickly are gradually gaining dominance. Conversely, many small and medium-sized enterprises are struggling to maintain operations and implement projects.

According to data from the General Statistics Office, in the first quarter of 2026, 726 real estate businesses nationwide dissolved, double the number compared to the same period last year. One of the biggest pressures currently is the issue of capital. Access to bank credit remains stringent, especially for businesses with limited financial capacity or projects lacking complete legal documentation. Furthermore, while the corporate bond market is gradually recovering, it has not yet become an easy way to raise capital as it was before. Investors are now tending to choose reputable, transparent businesses with projects capable of generating tangible cash flow.

At the same time, pressure also comes from changes in customer demand following market fluctuations. Legal factors, construction progress, developer's capabilities, and the practical potential of the product are prioritized. This makes it difficult for businesses lacking brand recognition or those that have not yet proven their project development capabilities.

Furthermore, the enactment of numerous new laws related to land, housing, and real estate business is creating a more transparent business environment, but it also requires businesses to be able to adapt quickly to new regulations.

We need a different approach.

Dr. Nguyen Van Dinh, Vice President of the Vietnam Real Estate Association, believes that the current purification process is an inevitable trend in the development of the real estate market. Instead of competing through rapid expansion, the market is shifting to a phase that prioritizes investment efficiency, product quality, and management capacity. The current pressure presents an opportunity for the market to eliminate unprofessional businesses, creating conditions for truly capable investors to develop more sustainably.

According to Dr. Nguyen Van Dinh, small and medium-sized real estate businesses still have a chance to survive and develop if they choose the right strategy. Instead of directly competing with large corporations in projects spanning hundreds of hectares, SMEs can focus on niche segments or local markets, where they have advantages in understanding customer needs and flexible implementation capabilities; at the same time, they can focus on products that meet real housing needs such as: affordable housing, social housing, real estate serving industrial production, logistics, or products that can generate stable cash flow.

“The most important solution right now is for businesses to restructure their investment portfolios, focusing resources on projects with high feasibility, clear legal frameworks, and the ability to generate short-term cash flow. Spreading resources across many projects or relying too heavily on borrowed capital will increase risks in the context of rising interest rates and capital costs. In particular, businesses need to change their development mindset, shifting from chasing scale to improving product quality and operational efficiency,” Dr. Nguyen Van Dinh stated.

Dr. Tran Xuan Luong, Deputy Director of the Vietnam Real Estate Market Research Institute, believes that in the current context, enhancing transparency is also a crucial factor for small and medium-sized enterprises (SMEs). Businesses need to build a professional image by publicly disclosing project information, ensuring implementation progress, and fulfilling all commitments to customers. In addition, collaboration and cooperation are also important solutions to help businesses increase their competitiveness. Instead of independently developing entire projects, businesses can cooperate with partners who have strengths in finance, operational management, or product distribution to reduce resource pressure and improve investment efficiency.

Furthermore, digital transformation in corporate governance and business operations is becoming an inevitable trend. The application of technology not only optimizes operating costs but also helps businesses reach customers more effectively in an increasingly competitive environment. For small and medium-sized enterprises (SMEs), the current challenges also present opportunities to reposition their development strategies. Businesses that focus on real value, effectively manage risks, control cash flow well, and remain committed to long-term goals can still find a place in the market.

Source: https://hanoimoi.vn/doanh-nghiep-bat-dong-san-vua-va-nho-tim-co-hoi-truc-suc-ep-cua-thi-truong-976496.html