The Vietnam Real Estate Brokers Association (VARS) has just released the report "The health of the real estate market in Vietnam" with many data showing that in the first 5 months of 2023, real estate businesses are still facing a lot of difficulties, leading to a tragic brokerage industry.
Accordingly, the market is always in a state of "thirst" for supply, especially the supply of affordable housing, which is suitable for the financial ability of the majority of people. “Poverty, unattractive, shortage” are the correct words to describe the current supply situation. In the first quarter of 2023, the supply to the market reached about 25.000 products, mainly inventory from previously launched projects, but there was a complete lack of information on opening and selling from new projects.
Long stagnation, wasteful project…
The overall absorption rate of the whole market was only about 11%, equivalent to more than 2.700 transactions, down more than 50% compared to the same period in 2022.
The survey showed that real estate investment and development enterprises simultaneously fell into a state of "suffocation" for a long time like "people about to drown". Although, the enterprise has tried to gradually eliminate the factors that reduce the weight, but it is still not strong enough to be able to rise up.
According to VARS, the life force forces businesses to try to "struggle, kick" and be ready to "cling" to any lifebuoy. During the period from the beginning of 2022 until now, the government has created many buoys to save the market and businesses. However, businesses have not yet been able to cling to these rescue tools and create momentum and rise to the surface.
"The strength of enterprises is limited, if they do not "survive" in time, they will certainly enter the phase of "choking water, stopping breathing" simultaneously, the report stated.
From this difficult situation, the decrease 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. According to VARS statistics, the number of brokers still active in the market is only about 30%-40% compared to the end of 2022 but there is no sign of stopping.
Most brokers have to quit their jobs both because their income is not enough to live on, or because the business is laid off, temporarily closed, or bankrupt.
Real estate brokers who stay with the profession must flexibly apply all forms to survive such as diversifying fields, looking for part-time jobs, etc.
One bright spot is that over 95% of active brokers said that they will continue to stick with the profession even though the market is difficult. 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.
VARS forecasts that if the real estate market continues to be difficult, up to 23% of businesses will not be able to maintain operations until the end of the third quarter of 2023 and only about 43% of businesses will survive until the end of the year.
