The number of real estate companies that dissolved increased by 30.4% compared to the same period last year.

DNHN - In the information report on the housing and real estate market for the second quarter of 2023, released on August 2, the Ministry of Construction announced the activities of real estate-related businesses.

According to the most recent data compiled by several survey and evaluation organizations, the real estate industry continues to experience a rise in dissolution.

Specifically, the number of dissolved businesses increased by approximately 30.4% compared to the same period in the prior year, while the number of newly established real estate businesses decreased by approximately 61.4% compared to the second quarter of 2022.

Currently, businesses in the real estate sector continue to face several difficulties and challenges, which fall into three categories.

Firstly, numerous real estate projects face obstacles and legal issues. Specifically, the implementation of regulations on land valuation methods; the announcement of land use planning, but the absence of a district-level annual land use plan; having a detailed planning 1/500 approved but not consistent with the superior master plan (previous superior master plans are no longer applicable and are being reviewed, adjusted, and updated by regulations); adjusting investment policy; regarding project allocation authority;...

Second, businesses face implementation difficulties and obstacles. This is due to the inefficiency of the coordination mechanism between departments, departments, branches, and localities. For instance, in the work of site clearance, compensation, support, and resettlement, land acquisition agreements, compensation prices with people; land price determination to calculate and collect land use levy, land allocation for resettlement (coordination between agencies related to land valuation is not timely); certain investors have not coordinated closely with local authorities to implement the project's documents and procedures;...

Thirdly, many businesses struggle to obtain credit loans, barely able to mobilize capital from corporate bonds and other capital, resulting in an inability to implement projects due to a lack of capital (needing to delay progress, cease development of projects). declare). Many real estate businesses continue to struggle with liquidity and cash flow, particularly in light of the intense pressure to mature and repay corporate bonds in the final months of 2023. Companies are delinquent in bond principal and interest payments.

In addition, due to investor confidence and low liquidity in the real estate market, real estate businesses lack capital, many businesses are under the pressure of short-term debt, and total debt exceeds the size of the real estate market. acreage size.

Nevertheless, fluctuating foreign exchange rates, petrol prices, and construction material prices result in high business costs and have a significant impact on the business activities of enterprises.

Faced with the aforementioned circumstances, numerous real estate businesses were compelled to delay or suspend project implementation, as well as reduce and adjust personnel levels. Even so, many businesses are forced to lay off more than 60 percent of their employees to survive the current economic downturn.

Nghe Nhan