Thousands of real estate brokers have had to leave the market, which has cooled down.
After five years of hot development, the real estate market began slowing down. Tran Khanh Quang, CEO of Viet An Hoa, commented that the downturn of the real estate market is becoming clearer with fewer projects on sale and successful transactions.
A quick survey conducted by the company and its affiliated trading floors in HCM City found there were 10,000 brokers who sold project housing in the city in 2015. The figure soared to 60,000 by the end of 2018.
The six-fold increase in number of real estate brokers was attributed to the hot development of the real estate market in 2016-2018. During these years, many projects were launched into the market, which attracted workers from many business fields. They became brokers, investment consultants, or worked as chief marketing officers and directors of trading floors.
|The workers had high incomes during the hot development period. The salaries and bonuses were reportedly hundreds of million of dong or billions of dong a year.|
The workers had high incomes during the hot development period. The salaries and bonuses were reportedly hundreds of million of dong or billions of dong a year.
In mid-2018, some companies, when recruiting managerial officers, offered high incomes of billions of dong a year.
However, in 2019, the supply in the market decreased dramatically and the ‘basket of goods’ fell by 60 percent. As a result, real estate brokers have entered an unprecedented crisis.
In early 2019, some sales officers left HCM City for provincial markets as the HCM City market had become too competitive.
The products launched into the market decreased by 50-60 percent. Most of them belong to the high-end market.
It was estimated that in 2017, three sales officers sold one product within four weeks. Now, eight brokers can sell one product within one month. With the commission of 1-1.5 percent of total value of contracts, the income of brokers is not high enough to make a living.
Quang estimated that 5-7 percent of sales officers, or 3,000-4,000 workers, have switched to other jobs in the last 11 months.
The workers who left had a fixed salary and commissions at zero.
Meanwhile, about 10 percent of sale officers, or 6,000 workers, now sell properties and do other jobs to earn extra money.
Analysts say they don’t think the real estate market wilm warm up in the time to come, though the year-end sale season is coming.
Ken Research has released the report titled “Vietnam Real Estate Market Outlook to 2025", providing a comprehensive analysis of the real estate space within Vietnam.
Real estate remained the second biggest magnet for FDI in 2019, following processing – manufacturing, as it attracted $3.88 billion FDI, equivalent to 10.2 percent of the total registered.