The storm of challenges hitting the property industry continued throughout the first half of this year. According to socio-economic data from the General Statistics Office, a total of 1,463 property companies completed dissolution procedures. This figure represents a significant surge of 120% compared to the same period last year, with an average of 243 business entities forced to cease operations each month.
Amid the existing pressures, market dynamics showed mixed signals. Although there were 3,200 new business entities established—a 23% increase—the number of companies resuming operations actually shrank by 12% to 2,400 units. This phenomenon reflects a market undergoing sharp consolidation due to slowing transactions and investor caution in managing cash flows.
One of the main triggers of this sluggishness is the upward trend in mortgage interest rates, which now stand at around 13-14% per year, far exceeding last year's figures. This increase in borrowing costs directly pressures public purchasing power and forces prospective buyers to be more selective. Data from CBRE even shows that the absorption rate of the apartment market is currently held at 68%, far below the performance of the previous period, which had exceeded 90% of the total supply.
In response to economic uncertainty, developers are now prioritizing the completion of ongoing projects instead of expanding large-scale land banks. The development focus has now shifted to residential products that target the real needs of the community.
Nguyen Trung Vu, Chairman of the Board of Directors of Cen Land, emphasized that brokerage firms are now facing increasingly heavy capital pressure. The developers' policy of requiring upfront down payments for inventory allocation, coupled with tightening competition, has further restricted the room for movement of brokerage firms. This condition forces the industry to continue restructuring in order to survive in a challenging market climate.
