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| Many large real estate enterprises promote year-end production and business plans |
Some enterprises listed on the stock exchange have seen great profits
The Ministry of Construction said that many large real estate enterprises had stepped up investment plans and activities in the last months of 2021.
The Ministry of Construction said that the number of enterprises temporarily suspending business in the construction sector was 6,171 in the first nine months of 2021 (accounting for 13.7%). The number of construction enterprises awaiting dissolution was 4,091 (accounting for 12.6%). In addition, the number of newly established real estate enterprises in the first nine months of the year increased by 11.5% over the same period in 2020.
“Despite experiencing four waves of the Covid-19 pandemic, especially the fourth wave that broke out in the past few months, enterprises have faced many difficulties, but some real estate companies still have great profits and mainly focus on the group of enterprises listed on the stock exchange, while the real estate companies that have not been listed on the stock exchange are not able to get positive business results,” said the Ministry of Construction.
The strong growth of the stock market has helped real estate companies listed on the stock exchange have favorable conditions in mobilizing and coordinating capital flows, thereby facilitating profit planning and distribution.
As noted by the Ministry of Construction, in the last months of 2021, many large real estate enterprises have stepped up their investment and business plans and activities.
Specifically, in September, Thang Loi Group held a ceremony to introduce the official online sale of third phase of The Sol City project (Long An province). This was considered a potential project for real estate in the West of Saigon. It was expected that in October, this group also launched many events to open sales of the above project.
Hung Thinh Group has just become a strategic partner with Song Tien Real Estate Joint Stock Company to develop the Angel Island project.
Angel Island project (Nhon Phuoc tourist urban area) on Nhon Phuoc island, Dai Phuoc commune, Nhon Trach district, Dong Nai with a total investment of more than VND4,700 billion, with a scale of more than 204 hectares. This is considered a move to revive a project that has not been developed for many years.
Another project is Grand Marina Saigon, a project of Masterise Group (formerly known as Thao Dien Investment Joint Stock Company – Thao Dien Investment), located on Ton Duc Thang Street, District 1 which is also being heavily promoted.
Currently, many real estate exchanges have started advertising policies to get customers interested in this project. The project is under construction and is expected to be completed in the first quarter of 2024.
80% of exchanges have no revenue or very little revenue
The Ministry of Construction also said that in recent years, the operation of real estate exchanges had faced many difficulties.
Due to the impact of the pandemic, the activities of real estate exchanges have been heavily affected. Up to 28% of units are at risk of dissolution or bankruptcy, 32% of units are struggling to cope to maintain and 40% of units are still resilient, but not high.
Statistics show that, currently, more than 80% of exchanges have no revenue or very low revenue, the salary fund is exhausted, forced to reduce personnel (retirement) or temporarily stop working without wages.
The fact also shows that, although the exchanges have been proactive, flexible, changing business plans in terms of adaptation, technology application, digital transformation in sales, but with the pandemic in the third quarter, real estate exchanges faced many difficulties. Especially, small and medium sized exchanges with low financial resources that were using bank loans.
Speaking at the seminar on Real Estate Exchange and Brokerage to overcome difficulties due to Covid-19: Solutions and recommendations, Mr. Pham Lam, General Director of DKRA Vietnam, talked about the difficult situation of real estate brokerage enterprises in the Southern region with about 100,000 brokers operating in Ho Chi Minh City, Binh Duong, Dong Nai, Long An.
“During the Covid-19 pandemic, the business plans of real estate brokerage enterprises were seriously affected. The outbreak of the disease caused the business situation to be paralyzed, according to which, 70% of enterprises chose to adjust wages, cut workers’ wages or stop operating. 30% of enterprises operate stably, with low personnel turnover,” said Mr. Lam.
According to Mr. Pham Lam, 50% of enterprises had a turnover of less than 10%. 30% of enterprises had a turnover of 30-50%. 10% of enterprises had a turnover of 50-70%. 10% of enterprises had stable revenue. Along with that, all plans of the enterprises were turned upside down, the goals for the year and long-term goals were affected.