The real estate market is booming and it will certainly create a wave of real estate brokers returning to the profession. (Photo: MarketTimes).
Do you remember, from 2018-2020, the real estate market was very vibrant, and everyone was becoming a real estate broker. Joining the “storm” of brokers, Mr. Trung (Tu Son, Bac Ninh) decided to quit his job at a bank and join a large real estate distribution company in Hanoi.
Since switching to the new field, instead of a steady monthly income of 20 million VND, his income has increased significantly. In months when he makes many successful transactions, his commission can reach nearly 200 million VND, and on average, he earns around 100 million VND per month.
After only a few years in the new profession, since mid-2022, the real estate market has been in a downturn, and the number of successful transactions for him has been decreasing, especially in projects without inventory. He has been seeking additional opportunities in the field of residential real estate brokerage. However, due to the low value of the products, his commission has also decreased. His income is now only 10-15 million VND per month. With this level of income, he has to tighten his belt to cover his living expenses in the city and wait for the market to recover.
According to the Vietnam Real Estate Brokers Association (VARS), in 2023, about 70% of real estate brokers have quit the profession, and more than 90% of real estate personnel have experienced a decrease in income. Staff cuts have occurred in most real estate-related businesses. This can be considered a difficult time for the real estate market and real estate brokers.
However, according to data from batdongsan.com.vn, the level of interest and the number of property listings for sale in December 2023 increased by 2% and 8% respectively compared to the previous month.
The level of interest in properties for sale in December 2023 also increased compared to the previous month. Specifically, the interest in condominiums increased by 1%, detached houses by 4%, and land by 1%. The number of property listings for sale increased the most for detached houses by 10%, condominiums by 6%, land by 3%, and commercial properties by 12%.
At the end of 2023, Mr. Trung’s income as a real estate broker has started to pick up, and some of his colleagues who had switched to the tourism industry are also considering returning to the real estate market.
Mr. Trung said that since early November 2023, the real estate industry has started to see transactions again. Investors are showing more interest in land, and even though the supply of condominiums is still scarce, second-tier markets have also resumed their activities. Moreover, the credit policies of the Government and the State Bank of Vietnam have provided incentives for the real estate sector. Therefore, according to Mr. Trung’s observations, the market will gradually recover by the end of 2024, and he has decided to return to his profession to earn a higher income.
Mr. Dang Van Nam, the head of a real estate brokerage office in Bac Tu Liem district (Hanoi), stated that for the past 2 months, his office has been bustling with 1 owner and 2-3 employees. The office is now busier with 5 staff members returning and a few newcomers joining them.
“In recent times, the market has been picking up, and there have been more successful transactions, which has given people confidence to return to the real estate brokerage profession. Previously, we would wait all day without receiving any phone calls from clients, but now the staff is busier as the number of customer inquiries has increased,” said Mr. Nam.
According to real estate experts, since late 2023, the real estate market has shown signs of recovery, but most transactions are still from genuine buyers. Professional investors are waiting for the right opportunity to make their move. Properties with good locations and reasonable prices still have a good chance of being sold.
According to Mr. Nguyen Van Dinh, Chairman of VARS, the real estate market in the last months of 2023 and the beginning of 2024 is gradually recovering, while also experiencing differentiation among segments and regions due to varying absorption capacities. One of the major obstacles in the market was the monetary policy, which has gradually been loosened in 2023 and will become more flexible in 2024, creating conditions for businesses and the public to have easier access than before.
“Real estate has already started to recover, although it is still only about 20-30% recovered compared to the golden period. However, in the future, the market will have a better scenario. The big boost will begin in the first quarter of 2024 as interest rates have dropped significantly, and the flexible policy at that time will be better,” analyzed Mr. Dinh.
However, Mr. Dinh also believes that real estate will not experience sudden growth but will slowly recover. The real estate market will not develop rapidly like before but will grow in a healthy and sustainable manner.
The market will undergo a process of refining the customer base, where decisions are made based on instincts, and financial leverage is not abused. It will only be suitable for customers with genuine needs or investors with sustainable finances and understanding of the market.
“The recovery of the real estate market will certainly create a wave of real estate brokers returning to the profession. To prepare for the upcoming development phase, some real estate companies are actively recruiting to expand their workforce,” Mr. Dinh stated.
