More than 300 real estate brokerage exchanges, representing more than 30% of the broker exchanges in Vietnam, have closed recently due to low supply and the impact of the COVID-19 epidemic.
Nguyen Van Dinh, Vice Chairman of the Vietnam Association of Realtors (VARS), was interviewed by local media and said that, “Real estate brokerage exchanges are facing a difficult situation.”
A report from VAR shows that at the beginning of the year, Vietnam had about 1,000 real estate brokerage exchanges, including large-scale exchanges with 3,000+ staff across the country, as well as smaller ones with only a few dozen employees.
Dinh from the VAR commented on the situation and noted that many realty project owners were not launching multi-city sales seminars and open houses in order to avoid crowds and risk spreading the COVID-19 virus. As most of the brokerage exchanges find their customers at such events, there was less and less work for them.
The VAR also estimates that as many as 500 other exchanges have been forced to temporarily suspend operations and these exchanges either laid off staff or have changed them from full-time to part-time employees, and also adjusted compensation systems.
There are estimates that there are still 150 ~ 200 real estate exchanges in operation and that most of these had been able to signed contracts with real estate investors before the epidemic began.
Data from the Ministry of Planning and Investment shows that by the end of 2019, real estate was the line with the highest number of businesses suspended and dissolved. Registration of temporary cessation of operation, up 36.8% year-on-year and 686 enterprises were dissolved, up 39.4% from the previous year.
Dinh from VAR’s said: “This is the worse time of the market in recent decades” and that the difficulty of the brokerage community was due to a lack of supply, especially in the big cities like Hanoi and Ho Chi Minh City where many projects have been placed on hold, due to difficulties in land clearance as well as the inspection process from the authorities.