According to the General Statistics Office, in the first 6 months of 2024, 3,185 real estate businesses nationwide announced temporary suspension of operations, equal to 125% compared to the same period in 2023.
The number of enterprises completing dissolution procedures was 605, equal to 92.5% compared to the same period last year. Most enterprises are facing the worst scenarios such as bankruptcy, suspension of operations, salary cuts, restructuring, etc.
Many real estate businesses are facing a crisis.
In reality, many real estate businesses are currently struggling with the problem of interest payments because the industry is characterized by high financial leverage, so the pressure of paying interest is weighing heavily on the businesses' shoulders.
Not to mention, businesses also have to pay a series of daily operating costs such as rent, employee salaries, business management costs, sales costs, etc.
In that context, cash flow from business is extremely limited due to stagnant projects, stalled projects, and prolonged completion times, causing many businesses, from small to large, to fall into a difficult situation.
Many "no"s make it difficult for real estate businesses
Expressing his opinion on the above issue, Mr. Nguyen Van Dinh - Vice President of Vietnam Real Estate Association (VNRea), President of Vietnam Real Estate Brokers Association (VARS) informed Nguoi Dua Tin that capital flow for businesses is showing signs of congestion.
The underlying reason is that market liquidity has weakened, leading to a sharp decline in business revenue.
Many businesses lack capital and are forced to stop ongoing projects, even lay off workers, reduce costs, accept losses, and sell potential ongoing projects.
Mr. Nguyen Van Dinh said the difficulties of real estate businesses come from legal procedures being stuck.
Besides, the difficulties of real estate businesses also come from the legal procedures being stuck, legal bottlenecks that prevent businesses from developing projects for sale are also the main factors causing businesses to run out of cash flow.
Thousands of projects across the country have almost no investment procedures approved, especially land price approval and financial obligations to pay land use fees, which are facing many problems due to old policies showing signs of backwardness, overlap and contradiction.
In addition, many "no" words such as no revenue, no liquidity, no legality cause real estate businesses to fall into a state of crisis.
Not to mention the difficulty in capital sources is not only local but common among all groups participating in the real estate market from investors, trading floors, brokers to customers and investors.
Therefore, Mr. Dinh expressed his opinion that all participants in the real estate market are eagerly waiting for the day when the 2024 Land Law takes effect and permeates, helping the market to unblock capital sources.
Land Law 2024 is expected to increase real estate liquidity
During the discussions before the National Assembly on the draft law, some National Assembly deputies also expressed their opinions that when the difficulties of real estate are cleared, it will have a positive impact on the economy and promote GDP growth in the last 6 months of 2024, especially removing difficulties in capital for real estate enterprises, promoting investment in production and business.
Delegate Nguyen Tuan Anh (Binh Phuoc delegation) said that the real estate market is expected to "break the ice" when the Land Law soon takes effect.
Accordingly, the Land Law has many new contents on the rights and obligations of land users, on planning, land use plans, on land allocation, land lease, permission to transfer land use purposes, on finance, land, and land prices, which will contribute to removing legal obstacles for projects related to land use in enterprises.
"In particular, many businesses are waiting for the law to take effect so they can switch to leasing land and paying annual rent, reducing the financial burden in the early stages of project implementation," said Mr. Tuan Anh.
Delegate Nguyen Tuan Anh analyzed that real estate businesses and the real estate market have recently been in a "waiting state".
In particular, waiting for the resolution of legal problems that account for 70% of real estate businesses' problems, this is the decisive factor in the formation and development of real estate projects, and is a key issue that needs to be resolved to create momentum to help the real estate market recover - especially problems related to land policies.
Delegate Nguyen Tuan Anh (Binh Phuoc delegation) said that the real estate market is expected to "break the ice" when the Land Law soon takes effect.
Sharing the same view, Ms. Do Thi Thu Giang - Consulting Director of Savills Vietnam said that the application of the 2024 Land Law with new provisions such as changing the principles of land price determination, focusing on land valuation according to market principles, will help increase transparency and liquidity for the real estate market.
The analyst said that in the future, when the land price database is completed, information on buying and selling will be made public.
At this time, buyers and sellers can access to find out transaction information. From there, there is clear awareness, helping to increase transparency for the real estate market.
Besides, buying and selling real estate will also be easier, helping to increase liquidity in the market.
Opportunities for business cash flow
Presenting opportunities for the real estate market after applying the 2024 Land Law, in an interview with Nguoi Dua Tin , Lawyer Nguyen Thanh Ha - SB Law Firm, presented a number of new points in the 2024 Land Law that are likely to create opportunities and support for both real estate investors and land users in terms of law.
According to Mr. Ha, these new points include granting licenses to transfer land with annual rental payments; expanding opportunities for mortgage loans; providing a mechanism to handle joint venture land issues and land users contributing capital to projects when the project stops operating or the enterprise goes bankrupt; and providing mechanisms and procedures for site clearance.
In addition, the implementation of the new law will help improve the supply of real estate. One of the reasons why many projects have been delayed for a long time is the difficulty in site clearance due to inadequate compensation. The pricing mechanism based on market reality will support the land fund to be deployed more quickly.
Lawyer Nguyen Thanh Ha - SB Law Firm.
Mr. Nguyen Van Dinh also agreed that the implementation of the 2024 Land Law will contribute to unblocking capital sources for real estate businesses and participants in this real estate market.
"Complete legal procedures will help projects be implemented, have products to sell, bring revenue to businesses, and solve the problem of operating costs for real estate businesses that are running out of cash flow," Mr. Dinh said.
The strict provisions of the revised Laws will contribute to supporting businesses in developing real estate projects. More specifically, it will create transparency, fairness and opportunities for real investors and investors with full capacity.
However, Mr. Dinh also noted that special attention should be paid during the implementation of the new Law. If decrees and sub-law documents are issued without being strict and careful enough, they may continue to create bottlenecks.
Along with that, the expert also recommended that there should be more special credit policies specific to the real estate market to stimulate and accelerate the market's recovery.
Source: https://www.nguoiduatin.vn/ky-vong-da-thong-mach-von-cho-bds-tu-viec-dua-luat-dat-dai-2024-vao-thuc-tien-204240731101022031.htm
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