The Viet Nam Association of Realtors (VARs) has reported that more than 90 per cent of the real estate exchanges recorded a decrease in revenue in the first quarter of this year compared to the same period last year.

In which, 39 per cent of the firms saw revenue decline by 20 per cent to 50 per cent; and 61 per cent saw revenue fall over 50 per cent.

For some businesses with less than 100 employees, the revenue reduction is up to 70 per cent to 80 per cent.

VARs attributed the situation to the low overall market absorption rate which is only 11 per cent, equivalent to some 2,700 transactions, in the first quarter this year, down more than 50 per cent compared to the same period last year.

Survey results of VARs with real estate exchanges also show that more than 95 per cent of the companies had to reduce their labour size and 50 per cent of them reduced their labour size by more than 20 per cent compared to the second quarter of last year.

Particularly, in the first five months of this year, many brokerage businesses continued to lay off between 10 and 20 per cent of personnel compared to the end of last year.

More than 40 per cent of real estate service businesses said they have cut staff salaries by 10 to 20 per cent.

More than 44 per cent of the businesses had to cut staff to avoid reducing wages.

VARs forecast that if the market situation remains difficult, up to 23 per cent of brokerage enterprises will only be able to maintain operations until the end of the third quarter of this year and 43 per cent of the businesses will only survive to the end of this year.

Meanwhile, the HCM City's Department of Construction estimates that there are 59 operating exchanges and 100 per cent of them have problems related to revenue, expenses, and commissions for employees.

Chairman of VARs Nguyen Van Dinh commented that many businesses were struggling and unable to find a way out at this situation.

Although the Government has taken action to support firms, it is not permeable enough to thoroughly solve the problem.

The representative of VARs commented that the Government needs to issue decrees and policies that are realistic and specific for the whole market, aiming at exactly what the market expects, such as tax reductions, extend the time to pay corporate tax and personal income tax.

Along with that, businesses should actively develop new product sources, new product segments; stimulate new demand; and improve cash flow processing techniques. — VNS