The number of real estate businesses shutting down increased by 60.7%

DNHN - According to the Department of Housing and Real Estate Market Management (Ministry of Construction), 341 businesses were dissolved or went out of business in the first quarter, an increase of 30.2%, and 1,816 businesses did the same

According to Tapchixaydung.vn, Hoang Hai, director of the Housing and Real Estate Market Management Department, stated information regarding the real estate market during the Ministry of Construction's quarterly news conference in the first quarter of 2023. The real estate sector is still having a lot of problems.

Which, compared to the same period in 2022, there were 940 fewer newly founded businesses functioning in the real estate sector during the quarter. In addition, the number of businesses that dissolved or stopped operating increased by 341 and 1,816 respectively over the same period in the previous year (synthesized data from the General Statistics Office, Business Registration Department of the Ministry of Planning and Investment, private).

The Department of Housing and Real Estate Market Management asserts that businesses engaged in the real estate industry are currently confronted with numerous obstacles and need to adapt their business and management plans, including operational and debt restructuring. company operations, limiting the amount invested in production and business, streamlining the system, and employing fewer people. To deal with the current challenging conditions, many businesses ceased starting new projects, stopped issuing shares to raise funds, and some enterprises slashed their employment by up to 50%.

The Ministry of Construction lists the following as the primary challenges: Difficulty in obtaining credit loans, issuing bonds, and raising funds from clients, causing enterprises to lack the capital to halt progress on projects. judgment;

The cost of doing business for businesses grew as a result of rising loan interest rates, foreign exchange rates, the price of oil and fuel, and the price of building materials. The scope of production and company investment is being reduced by several firms and real estate businesses to minimize the infrastructure and lower labor costs.

According to local data, the Ministry of Construction also stated that there will be 18,808 land units (containing apartments, single-family homes, and land plots) in the first quarter of 2023, including 2,572 apartments, 9,123 single-family homes, and 7,113 land plots. The majority of the inventory falls within the categories of individual residential properties and project land plots.

Land prices declined in line with the market's overall trend. Apartments draw greater attention. Land plots specifically declined by 3.5% to 7% (significantly decreased in the regions of Da Nang, Hai Phong, and Khanh Hoa). Land plots in ongoing projects saw a secondary sale price decline of roughly 5% to 8% (much lower in the regions of Dong Nai, Khanh Hoa, Da Nang, and Ho Chi Minh City). Depending on the location, the two major cities of Hanoi and Ho Chi Minh City declined by roughly 7%. In the first quarter of 2023, there are just a few brand-new apartments for sale, mostly in the middle- and high-end markets.

According to the Ministry of Construction, individuals with genuine housing needs continue to be drawn to good-sized, practical, and high-quality flats for rent in Hanoi, Ho Chi Minh City, and other provinces. That includes the desire for high-end goods.

Since the second half of the first quarter of 2023, both the primary and secondary marketplaces have seen a dramatic rise in the number of flat searches and sales. High absorption rates are found in some apartment developments built by reputable developers in handy locations.

TH