Property sector drowning in difficulties

By Duc Minh June 28, 2023 | 12:11 am PT

Housing projects in HCMC's Thu Duc City. Photo by VnExpress/Quynh Tran

The number of suspended companies in the property sector increased by 40% in the first half of 2023, the highest growth rate among 17 sectors.

Around 100,000 companies were suspended, or an average of 16,600 a month, according to the Ministry of Planning and Investment.

The ministry does not make a distinction between property developers and real estate brokerages in its data.

The Vietnam Association of Realtors, in a report earlier this month, said that real estate brokerages were "drowning" due to declining demand.

But still over 113,000 new companies were registered in the property sector in the first six months, or an average of 19,000 a month.

"This a positive sign amid difficulties," according to the planning ministry.

The average capital of a registered company, however, was lowest in five years at VND9.3 billion ($395,000).

The planning ministry said that many companies are not getting loans amid low demand and high inventory, and therefore they need intervention from the government to boost consumption.