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Multiple realty firms exit market in Jan-Mar

The Saigon Times

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HCMC – The number of real estate businesses pulling out of the market surged in the first quarter of this year while new market entrants dropped sharply, according to the Ministry of Construction,

At a press conference on April 24, Hoang Hai, director of the Housing and Real Estate Market Management Agency under the Ministry of Construction, said realty businesses still grapple with difficulties.

The first three months of the year saw a 63% plunge in newly-established firms over the same period of last year. Meanwhile, firms liquidating and temporarily suspending their operations soared 30% and 61%, respectively.

Statistics showed that 30%-50% of real estate exchanges had to cease operating against the previous quarter, while 30%-40% of real estate brokering companies struggled to survive tough times.

Access to credit, bond issues and fundraising have not improved much. In addition, rising interest rates, foreign exchange rate risk and higher fuel and construction material prices have negatively impacted the sector.

To help the sector tackle woes, the Ministry of Construction continued proposing ministries and localities remove hindrances to property projects, quickly approve the relevant planning and issue a resolution on rescheduling debt owed by property businesses.

The Ministry of Construction now expedites completing criteria set for businesses and residents eligible for the credit aid package of VND120,000 billion.

Resolution 33, issued by the Government on April 12, provides solutions to remove bottlenecks, boost the real estate market and help businesses in difficulties reschedule their principal, loan interest and debt classification.

Given the measures applied by the Government during the past time, experts forecast that from the fourth quarter of this year, the real estate market might recover when support policies produce results.

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