Real estate was bleak, many brokers quit

Ho Chi Minh City Real Estate Association (HoREA) has just reported on the assessment of the real estate market in Ho Chi Minh City in the first 10 months of 2020. According to the report, from March to July 2020, the real estate market is affected. caused by the Covid-19 pandemic, exacerbating the existing difficulties of the market in the last 3 years.

The market suffered a decline in both the supply of projects and the supply of housing products, especially affordable apartments and social housing.

The Covid-19 pandemic also had a great impact on the segment of real estate for rent (offices for rent, houses, premises for rent, commercial centers for rent); Tourist real estate, condotel; real estate brokerage and about 35 industries related to real estate.

In the whole country, in the first 8 months of 2020, there are 923 real estate enterprises (DN) dissolved, up 136% over the same period, the highest compared to other economic sectors, having a negative impact on 35 industries. related to the real estate market and affecting hundreds of thousands of workers. At the same time, the Vietnam Real Estate Brokerage Association said that about 80% of real estate trading floors had to stop operating recently.

HoREA cited data from the HCM City Department of Construction that in the first 9 months of the year, only 20 housing projects were eligible to raise capital (down 37.5% compared to the first 9 months of 2019) with 6,722 units (down 65.8% compared to the first 9 months of 2019).

In which, there are only 163 affordable apartments, accounting for 2.5% of the total project housing (down to 98.5% over the same period in 2019); There are only 1,863 mid-end apartments, accounting for 25% (down 56.4% compared to the first 9 months of 2019). Meanwhile, there are 4,876 luxury apartments, accounting for 72.5%, the highest in the total number of commercial houses and up 24.5% over the same period in 2019.

Real estate brokers are the most affected by the Covid-19 pandemic and the sharp decline of the real estate market. However, the difficulty of the brokerage profession has appeared since 2019 when the supply of projects in Ho Chi Minh City is increasingly scarce due to public land problems, legal problems …

The director of a brokerage company in Ho Chi Minh City said that in the past, investors often did not choose too many brokers for a project, but because there were no goods to sell, the brokers had to find every way to continue. approaching “basket of goods” of the investor. There is a project where the investor chooses 50-60 F1 companies, and then these companies divide the goods back to the F2 unit … so the rate of “fighting” is very high, many brokers sell the same apartment. Not a realtor selling dozens of apartments like before.

The difficult real estate market lasted so many businesses and brokers struggled to stick with the profession. Photo: TAN THANH

It is worth mentioning that there are investors who apply the form of paying brokerage fees according to the payment schedule, not according to the 7-3 rate as before. There are also enough reasons to reduce commission fees, so the brokerage firms are even more difficult.

Mr. Thanh Toan (29 years old) – an employee of a prestigious apartment and resort real estate brokerage company in Ho Chi Minh City – said he had just decided to quit his job and switch to a manager for a company specializing in furniture, decorative materials with a salary of 12-13 million VND / month. The reason is that the brokerage income is decreasing, while the hard salary is only 3.5 million dong / month. “There are dozens of brokers who just work hard at one customer, waste time and effort. But when the product is sold, the commission fee is not much” – Toan confided.

And Ms. Bao Tran (33 years old), an employee of another real estate brokerage, said she had to sell more nutritious cereals online because over a year, her income decreased by 60% -70%, not enough money to cover the family. family for 4 people. “Before, I was a good broker, at the top of the company, my income was quite good and there were many acquaintances, trusting, so I tried to hold out, but most of my colleagues went to other jobs” – Tran said.

In order to survive, many brokers are forced to choose projects in the province to sell, in order to create jobs for employees, even though the company is not profitable. Because the investment costs for advertising, travel, accommodation and customer care costs are expensive, but it is not certain that the goods can be sold as expected. “We expect a lot on the stability of the market in the next 1-2 years, so we should hold on” – the general director of a company shared.

Mr. Pham Lam, Vice Chairman of Vietnam Real Estate Brokerage Association, said that because there were no goods for sale, the brokerage firms were not able to have enough power to “fall” almost. Only reputable, experienced, well-qualified, and enduring businesses are left.

The market gradually recovered

According to HoREA, from August up to now, on the basis of effective control of the Covid-19 epidemic and the efforts of the business community, the real estate market has gradually recovered, coupled with the strong growth of the market. Industrial real estate.

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