Sep 8, 2012

Vietnam - Economic Slump Pushes Property Trading Floors Out Of Work

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A number of real estate trading floors have disappeared or changed business after a time operating in the gloomy market.

The D. C. Real Estate Trading Floor o­n Yen Hoa Street had to close after a year. The head of the trading floor said, “Due to the slump in real estate market, many companies and trading floors have shut down and in debt into billions of VND. We can’t maintain operations, so we’ve closed to limit the losses.”

Even some of the busiest trading floors such as the o­nes o­n Nguyen Thi Dinh, Trung Hoa Nhan Chinh or Le Van Luong streets look near empty.

The still working trading floors have to depend o­n investors to maintain work or change businesses.

Along Le Van Luong Street, more than half of 40 trading floors have closed. Many of them changed into cafe shops, karaoke bars or rented out the building.

Le Ngoc Quynh, Director of o­nline trading floor, nhadat24.net, said o­nly 15% of the staff had been retained. The o­nce busy companies can’t escape the impact of the economic downturn and associated losses. The DTJ Trading Floor has also sold furniture and construction materials to remain in business.

To attract customers, the Sohovietnam Trading Floor offers consultancy services in contributing capital in apartments, hotels or resort projects.

The property transaction market in both Hanoi and HCM City has remained sluggish in the first half of 2012. Both transaction floors have experienced very low transaction figures. Because the private investors haven’t regained trust in the market, waiting for lower prices, few trades have been completed.

In a recent report by Hanoi Department of Construction, 122 over 500 trading floors have suspended operations and over 200 floors reported no successful trades.

Tran Hop Dung, Hanoi Construction Department’s chief of the Economic Management Division said, “The trading floors are mostly established by investors to promote and sell their own projects so competition is low. Besides, the lack of information and long-term plans are also a problem.”

Nguyen Hoang Nam, Head of the Info Trading Floor under Ocean Group said his floor had encountered difficulties recently. But in these times, the property trading floors must provide suitable products and services for the market.

According to the heads of local Department of Construction, enterprises should remain calm and see the bigger picture to overcome their current difficulties. This was also a perfect time to consider company restructuring to meet market’s needs.



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