Since 2022, the real estate market has been in a prolonged slump. In the past year, the Government, Ministries, and localities have been continuously dismantling, resulting in positive signs in the real estate market. Liquidity has also gradually improved, but still at a low level.
It’s harder to make money than in the booming market period, so many real estate brokers have quit. However, the remaining brokers are still struggling to find successful transactions.
After a period of searching for customers, during the Lunar New Year period, some real estate brokers were ecstatic when unexpected transactions occurred. Mr. Nguyen Hop, a real estate broker in Hanoi, shared that in the early stages of 2023, the market was almost stagnant, and most brokers had no transactions. By mid-year, the market showed more positive signs, but transaction volume remained low.
“Last year was still a sad year for many real estate brokers. In the first half of the year, I was basically just sitting idle, using accumulated funds to maintain my profession. From July to November, I had 2 successful transactions. In general, the commission was also difficult to cover expenses in the Capital city. “
“At the end of last January, I felt ecstatic when there was another transaction for a 3.5 billion VND condominium. I received a commission of about 50 million VND. The owner paid me 30 million VND in advance to celebrate the Lunar New Year, and the remaining amount would be paid later. Honestly, when the customer made a deposit to buy this apartment, I was even happier than when the real estate market was hot!” Mr. Hop said.
This real estate broker added that although the real demand was still significant, the high housing prices in the inner city made buyers hesitate to invest. As a result, many real estate brokers were put in a difficult situation with no transactions.
Similarly, Mr. Le Trung Manh, a land broker in the outskirts of Hanoi, shared that after a period of about 3 months of “sitting idle,” he had successfully completed 2 land transactions worth a total of 4 billion VND.
“Many real estate brokers quit the profession because there were no transactions. I still try to hold on, waiting for a more active market. Having more transactions near the Lunar New Year makes me happy, but before that, I had a hard time chasing after customers. The commission is not much, but I have some extra money to shop for the Tet holiday,” he said.
According to Mr. Vu Thanh Trung, the owner of a real estate trading floor in Hanoi, the end of the year is usually a good time for brokers, but in the past 2 years, it has been difficult.
“Every year, business is good, and brokers take a break from the Lunar New Year. But this year, many people still plan to stay at the project and take customers to visit during the days near the Lunar New Year to have more chances for transactions. Currently, if there are transactions, they will mainly be in segments that meet real demand, but continuous price increases make brokers find it challenging to close deals,” Mr. Tung said.
In reality, the market is still in a low transaction situation, causing real estate companies and brokerage floors to face difficulties. Even many real estate companies have had to close down and go bankrupt.
Mr. Nguyen Van Dinh, Chairman of the Vietnam Real Estate Brokers Association (VARS), said that in 2023, the market witnessed the “departure” of a series of real estate companies. As for real estate trading floors, 20% of them continue to face the risk of dissolution and bankruptcy; 40% of floors are striving to sustain, only operating with a few core staff, trying to survive, “living on faith” that the real estate market will recover.