REAL ESTATE REPORTS HIGHEST NUMBER OF SUSPENDED FIRMS

The real estate sector saw the highest growth in the number of enterprises registering for a temporary suspension between January and August at 923 firms, skyrocketing by 136% year-on-year, due to the impact of the coronavirus pandemic.

Meanwhile, 620 real estate enterprises completed procedures for dissolution, with the sector ranking fifth among the country’s dissolved firms over the eight-month period, after the wholesale, retail, and vehicle maintenance sectors, with some 38,000 firms, followed by the processing and manufacturing sector, construction, and science, technology, design, marketing and consulting services.

In the year to August, the country had some 34,300 suspended firms, up 70.8% year-on-year, while over 10,350 enterprises registered for dissolution, down 1.9% from the previous year's period.

The number of newly established firms active in the property sector during the eight-month period fell by 19.6% year-on-year, VietnamPlus news site reported.

Le Hoang Chau, chairman of the HCMC Real Estate Association, attributed the hike in the suspension of housing developers to the health crisis. He said the real estate market faced multiple difficulties from 2018 to 2019 due to the policy on strict control over property loans, shouldering an additional burden caused by Covid-19 this year.

Real estate firms have been withstanding pressure and facing several challenges triggered by the pandemic, dragging the property market down this year.

The Covid-19 pandemic has interfered with marketing, advertising and selling activities for property products, sending the revenue of many property firms down, Chau said, adding that multiple firms have even incurred heavy losses as costs of management and investment and loan rates have soared.

Source: The Saigon Times