Rising number of real estate firms close despite brighter market

The number of real estate businesses that are being forced to suspend operations is on the rise, despite recent positive movements in Vietnam’s market.

According to the Vietnam Association of Realtors (VARS), the property market recorded an absorbtion rate of 31%, with 6,200 transactions closed in the first quarter of 2024, up 8% from Q4/2023 and doubling that over the year.

The real estate sector has continued to recover, with a slew of diverse projects being launched or made available to the market.

The northern region will shortly be welcoming new apartment projects, including Lumiere Evergreen and The Sola Park at Vinhomes Smart City in Hanoi; MasCity in Bac Giang province; Vaquarius Van Giang in Hung Yen province; Golden Crown Hai Phong in the namesake city, and Ha Long Marina in Quang Ninh province.

In the southern metropolis of Ho Chi Minh City and neighboring localities, various apartment projects have been put up for sale or launched, such as Cara Riverview in Can Tho city; A&T Garden and Phu Dong SkyOne in Binh Duong province; The Beverly, Vinhomes Grand Park, and Eaton Park in HCMC; and New Vegas in Kien Giang province.

In the central region, after a prolonged freeze, the market has warmed up with projects including Gold Tower, Sun Ponte Residence, and Sun Symphony Residence in Danang city, and Libera Nha Trang in Khanh Hoa province.

Most projects put on the market since early Q2 have drawn significant interest, with impressive deposits and sales. VARS noted that most of these are mid-end projects, highlighting the substantial demand for investment in both high-end and mid-end segments.

In addition, the positive trends in the real estate market have been driven by partnerships and collaborations between developers and trading platforms, aiming to distribute products to both local and foreign markets.

Regardless of the brighter realty market, the number of real estate enterprises that suspended operations surged to 3,000 in the first five months of this year, an increase from 2,116 last year. The sector witnessed the dissolution of 489 firms, rising by 33 from the same period last year.

Meanwhile, the number of newly-established real estate firms inched up 2.2% year-on-year to 1,782 in the five months, and the number of industry businesses restoring operations climbed 24.7% to 1,529 businesses.