Hanoi (VNS/VNA) -More than 300 real estate brokerage exchanges, or one third of these firms inVietnam, have closed recently due to low supply and the impact of the COVID-19epidemic.

Nguyen Van Dinh, vice chairman of the Vietnam Association of Realtors (VARS),told local media: “Real estate brokerage exchanges are facing a difficultsituation.”

By the end of 2019, Vietnam had about 1,000 real estate brokerage exchanges, includingbig ones with 3,000 staff across the country, and small ones with only a fewdozen employees. VARS’ statistics showed that in the last three years, thegrowth of real estate brokerages in the market has averaged about 15 per centper year to reach 300,000 last year.

However, Dinh said: “Only two thirds of them can stay in the market,” addingthe rest had to leave the market as many realty project owners were notlaunching house sales to avoid crowds and risk spreading the COVID-19 epidemic.

As most of the brokerage exchanges find their customers at such events, therewas less and less work for them, said Dinh.

According to the incomplete statistics of the association, another 500exchanges had to temporarily suspend operations. These exchanges eitherlaid off employees or change them from full-time to part-time jobs.

There were still between 150 to 200 real estate exchanges because they havesigned new contracts with real estate investors before the epidemic began. Nowthey still had lots of products and existing customers.

Data from the Business Administration Registration Department underthe Ministry of Planning and Investment, showed that, by the endof 2019, real estate was the line with the highest number of businessessuspended and dissolved, with 598 enterprises. Registration of temporary cessationof operation, up 36.8 percent year on year and 686 enterprises dissolved,up 39.4 percent. 

Su Ngoc Khuong, senior director of Savills Vietnam added that in the 686dissolved, brokerage service providers were the majority

VARS' vice chairman said: “This is the worse time of the market in recentdecades.”

Dinh also clarified the difficulty of the brokerage community was dueto a lack of supply, especially in the big cities like Hanoi and HCMCity. According to Savills Vietnam, many projects have been on-hold due todifficulties in land clearance as well as the inspection process from theauthorities.

According to an experienced realty investor, the epidemic has worsenedinvestors’ concerns. Many people who need to buy a house or an apartment arestill waiting for the epidemic to be brought under control./.