What is the impact of the crisis in Vietnam Real Estate Agent ?
According to the experienced Thanh Ut who is a saleman Saigon, the real estate project with new investors from early 2019 to September has dropped significantly. During this period, only one housing real estate project was approved, which was reduced to 83% from the previous plan, and 12 approved real estate projects other than residential real estate were also approved by reducing the investment to 72%.
Vinhome Grand Park in Saigon 2020
- Real estate sales staff in Ho Chi Minh City
Thanh Ut said 126 real estate projects were suspended in administrative proceedings until August 2018 from the time the Housing Act came into effect. Most of these projects have established investment plans, but most of them have not completed the procedure for the detailed construction plan for the 500/1.
Until March 2019, officials from the central government of Vietnam and Ho Chi Minh City said 124 projects were active, but in reality, most projects were found to have problems.
The current stagnation of the real estate market not only affects real estate investors, but also affects real estate brokers and partners that providing Vietnam real estate related services. The most affected of these are new companies, and Anh Khanh Duy, who was interviewed for the third year of the interview, is experiencing a different game. In 2015-2017, there was no difficulty in the operation, as the property was plentiful even in the early stages, and even customers called big hands were able to meet without difficulty.
Sunshine Diamond River Saigon in 2020 & 2021
However, in 2018, the real estate market began to stagnate. As the supply of real estate fell, sales of products fell sharply, and many projects created problems in administration and investment, creating chaos in the Vietnam real estate market itself.
In addition, incidents such as Alibaba (Vietnam real estate agent, currently arrested on charges of fraud) have triggered a psychological contraction of land investment. In addition to the number of customers, a series of events caused the situation that the business itself became difficult because it was impossible to trust each other in the real estate brokerage business.
Sunshine Resort 4.0 in May 2020
As this difficult situation persisted, the employees who were engaged in real estate brokerage quit, and even in the case of anh Duy, more than 20 employees left the company and only 15 remained.
In the past, only apartment products were sold, but now they handle various products such as land. There are not enough products to sell in Ho Chi Minh area, so we are looking for a variety of products, such as Nha Trang and Phan Thiet.
According to real estate experts, in this difficult market situation, real estate companies must respond to the market situation by changing operational strategies and flexible attitudes. In particular, it is not uncommon for small-scale startups to go bankrupt, so a more stable and systematic method of operation is needed.
- Researching for Vietnam Real Estate Market
At present, the real estate agent in Vietnam is not just a result of poor brokerage earnings. The real estate recession in Hanoi has already written articles in many Vietnamese media. Hanoi, which is smaller than Ho Chi Minh City, fluctuated and fluctuated by some speculators. In the Hanoi real estate market, 90 generations of luxury apartments have been traded in the past three months, which is only 2% of the luxury apartments supplied in Hanoi.
Real consumer demand rather than speculation will also freeze for the time being. According to the provisions of Decree 19/2017 / TT-NHNN, from January 1, 2019, banks can only use up to 40% of short-term capital for mid- and long-term loans, which is currently 45%. In addition, the credit risk weight has also been raised from 150% to 200%, which means banks need to increase their capital more and strengthen loan screening and interest rates.
Although Ho Chi Minh Real Estate was recently selected as the third largest real estate market in Asia-Pacific after Singapore and Tokyo, Vietnam's real estate market is expected to continue to undergo price adjustments or freezes due to the market downturn for the reasons mentioned above.