Despite the challenging market, many businesses continue to encroach on real estate.

DNHN - In the context of the still-challenging real estate market, many businesses within the industry have drastically shrunk or even closed, but several businesses from outside the industry continue to encroach on this segment.

According to data from the General Statistics Office (Ministry of Planning and Investment), the number of newly established real estate businesses in the first half of 2023 was only 2,179 units, a decrease of 59% from the same period in 2022. During the same time frame, the number of dissolved real estate businesses has increased by 22% to 654 units.

According to data from the Vietnam Association of Realtors (VARS), there are currently 30 to 40 percent more brokers on the market than there were at the start of 2022.

According to the Ministry of Planning and Investment's report on business registration in June and the first half of the year, eight of seventeen industries have experienced a decline in the number of newly established businesses compared to the same period in 2022, with the real estate industry experiencing the largest decrease of nearly 60 percent. In contrast, the number of businesses returning to operation in the industry increased by only 0.5% to 1,416 units.

According to VARS, if the market situation remains challenging, up to 23 percent of businesses will only be able to continue operations until the end of the third quarter, and only 43 percent will survive until the end of 2023.

Even though prospects and forecasts tend to lengthen the recovery period amid a difficult market situation, there are still businesses that choose to go against the grain.

Decree 10 is advantageous for resort real estate.

 The Government's Decree No. 10/2023/ND-CP is good news for the resort real estate market because it allows condotel apartments, offices, and resort villas to be licensed. if all conditions are met, certification of land use rights, home ownership, and other land-attached assets.

According to experts, this Decree is positive news, bolstering investors' faith in the resort real estate market, which has nearly frozen in recent years.

ST8 Investment and Development Joint Stock Company (HOSE: ST8) decided to enter the real estate sector with its first tourism-related project after adopting a strategy of changing the business's superstructure and rebranding itself after more than 20 years of operation. Project timeline for the Tram Huong Resort in Ba Doi village, Khanh Binh commune, Khanh Vinh district, Khanh Hoa province.

Tram Huong Resort is situated on a 4.53-hectare plot of land at the junction of Nha Trang Bay and the Central Highlands. The total investment in the project is nearly 1,970 billion VND, and the implementation cost is approximately 1,728 billion VND. 25 villas, 47 shophouses, 99 condotel rooms, and 272 hotel rooms are anticipated as products.

In this project, the ST8 Board of Directors agreed to deposit funds to Mr. Le Thanh Huy to establish a land fund for the project's implementation.

Song Da Industrial Park and Urban Development Investment (SUDICO, HOSE: SJS) recently announced its intention to enter the luxury real estate segment and develop resorts, in addition to developing the current industrial real estate segment.

According to the company, the two resort real estate projects in which SJS has invested will be located in Da Nang and Quang Ninh in 2023. In addition, SJS plans to implement the Van La project (Ha Dong - Hanoi) in the second half of 2023, which will consist of three subdivisions with high-rise apartments, villas, and adjacent houses. Which two 25-story twin towers contain more than 800 luxury apartments.

It is known that the total area of the Van La project is greater than 12 hectares, and the anticipated investment capital is greater than 50 million USD (approximately 1,182 billion VND). In this project, SJS collaborates with departments and municipalities. Focus on working with EVN Hanoi to agree on the plan to renovate and lower the 110 KW power line through the project and agree on the power supply connection points for the project; at the same time, review and adjust the feasibility study report of component projects to implement the next investment steps.

SUDICO was originally founded in 2001 as Song Da Industrial Park and Urban Development Investment Company, a subsidiary of Song Da Corporation - JSC (UPCoM: SJG). SJS was transformed into a JSC and given its current name in 2003.

In July of 2006, shares of SJS were listed on HOSE. By 2022, Song Da Corporation - JSC (state capital) will have completely divested its 36.35 percent stake in SIS.

Me Tri - My Dinh and Nam An Khanh urban areas are the projects that have "engraved" SJS onto the map of real estate businesses.

Real estate is encroached upon by steel companies.

Viet Duc Steel Pipe VG PIPE (HNX: VGS), a steel industry company, plans to invest in the Viet Duc Legend City urban area in the Dao Duc commune, Binh Xuyen district, Vinh Phuc province.