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| Newly-established property businesses drop by over 53% |
Meanwhile, the number of dissolved property firms was 855, up 10.8% year-on-year.
A total of 1,721 realty businesses resumed operations by the end of August, a year-on-year increase of 102%. However, the number of newly-established businesses in this field still decreased sharply.
Nguyen Tho Tuyen, chairman of the BHS Group, attributed the drop in new realty businesses to the fact that some real estate developers and brokers have had to operate idly or resort to temporary closure due to "stuck cash flows".
Up to 70% of brokers have switched professions, he continued.
A study by the BHS R&D office on the real estate brokerage industry in Hanoi and Ho Chi Minh City showed that the number of real estate trading floors that dissolved or temporarily ceased operation reached nearly 50%.
Nguyen Van Dinh, chairman of the Vietnam Association of Realtors (VARS), said that up to 20% of trading floors face the risk of dissolution or bankruptcy and 40% of trading floors are struggling to maintain operations.
According to VARS, if the difficult situation in the real estate market doesn’t improve, the number of businesses at risk of bankruptcy will continue to increase./.
