25% of real estate businesses can only survive until the end of the third quarter of 2023

From mechanism, policy to implementation efficiency is still a very difficult problem.

In recent times, the Government, ministries and sectors have shown their determination in removing obstacles and promoting the safe, healthy and sustainable development of the real estate market. However, according to the Vietnam Association of Realtors (VARs), removing difficulties and obstacles for real estate projects still has many limitations.

The reason is that the difficulties and obstacles have existed for a long time, the health of real estate enterprises has weakened. At the same time, the fear of making mistakes and fear of responsibility leads to shirking, avoiding, slow resolution, not daring to propose, not daring to decide of some officials in some localities, also reducing the effectiveness of support policies.

If the difficult situation in the real estate market continues, up to 25% of businesses can only survive until the end of the third quarter of 2023. (Photo: TMX)

Currently, the Government’s solutions to overcome difficulties are focusing on three issues: supply, investor sentiment, and access to capital. However, from mechanisms, policies to implementation efficiency are still very difficult problems.

In a recent survey of 500 real estate businesses, VARs said that in the groups of solutions to overcome difficulties in supply, 43% of businesses said that new mechanisms and policies issued since the beginning of 2023 have had a positive, very positive impact on real estate supply. 57% of businesses assessed that these mechanisms and policies have only recorded a normal impact.

Regarding the groups of solutions on investor psychology, 21% said that these solutions really have a positive, very positive impact on investor psychology. The remaining businesses all said that, after a period of observation and monitoring, they did not see any real and clear changes in the market, so after stabilizing their psychology, customers/investors still determined to "slowly but surely" and be extremely "cautious" before their decisions.

Regarding access to capital, more than 70% of businesses said that mechanisms and policies to remove difficulties in capital sources have not really had an impact on businesses. The remaining 30% recorded the positive impact of these policies in the group that needs to solve issues related to bond issuance activities.

After Decree No. 08/ND-CP and some moves from the State Bank, capital mobilization from corporate bonds has begun to show signs of recovery.

In addition, the VARs report also pointed out that 28% of businesses complained that preferential loan access programs, promotion and connection support programs were ineffective, very ineffective.

Only nearly 15% of businesses assessed the implementation of policies to support land access, including site clearance, land use rights, etc. as effective or very effective.

The number of dissolved real estate businesses continues to increase.

The survey results also show that real estate businesses continue to face many difficulties and challenges. Specifically, 50% of businesses said they faced the biggest difficulties in transactions, followed by difficulties in land law; capital, bond market, and credit with 21% and 22% of surveyed businesses choosing respectively.

Many real estate businesses are facing many difficulties. (Photo: VARs)

The increasing trend of the number of dissolved real estate businesses is the clearest evidence that businesses operating in the real estate sector are still facing many difficulties and challenges.

Data from the VARS Survey of VARS members who are real estate trading floors shows that up to 20% of floors are facing the risk of dissolution or bankruptcy, 40% of floors are struggling to survive, only operating with a few core staff. The rest are able to survive, but their resilience is not high.

The number of real estate businesses returning to operation and recruitment has increased in some localities with a good recovery in the real estate market, but not much. If the difficult situation in the real estate market continues, up to 25% of businesses can only survive until the end of the third quarter of 2023. If the difficulties continue until the end of 2023, the number of businesses at risk of bankruptcy will continue to increase.

Brokers and trading floors are also facing the risk of not receiving commissions on time. Trading floors are also likely to be fined or prosecuted for not having enough money to pay taxes, social insurance, etc. due to lack of income; or the landlord may demand the premises before the due date, cut off water, cut off electricity, etc. due to late payment or lack of money to pay.

Source: https://www.congluan.vn/25-doanh-nghiep-bat-dong-san-chi-co-the-tru-duoc-toi-het-quy-3-2023-post262367.html