Real estate broker paradox “healthy because there’s nothing to do”

During the period real estate market is facing difficulties, many companies have cut a large number of employees and brokerage forces.

According to data from a research unit, up to now By the end of 2023, the number of real estate brokers has decreased by 60-70% compared to the previous year. The Vietnam Association of Real Estate Brokers (VARS) reports that by the end of 2023, the market will only have about 100,000 active brokers, a decrease of 70%.< /p>

Earlier this year, Ms. Trinh Thi Kim Lien – Director Business Dat Xanh Services – also admitted that after the epidemic and difficult period of the industry, brokerage companies have exhausted their accumulated funds.

Activity ineffective business practicesproject is not available for sale, the source of money is trickling in, costs are incurred… causing brokers to consider whether to continue or stop. Many units had to choose to stop to preserve their strength to wait for the next phase of the market.

However, the real estate market is having many positive changes compared to the previous year. In the first months of this year, many real estate projects were introduced to the market. Brokerage units continue to promote recruitment to prepare for new projects.

For example, Dat Xanh Services recruited 500 sales staff, Cen Land recruited 300 people on some trading floors. The company also recruits 20-50 people or announces a preferential recruitment policy.

The healthy real estate brokerage paradox because there's nothing to do - 1

The real estate market shows signs of recovery, the brokerage floor is worried recruiting people (Illustration photo: Trinh Nguyen).

At a recent event, Mr. Pham Anh Khoi – Director of the Institute of Economics – Finance – Real Estate Research Dat Xanh Services (DXS FERI) – believes that the current general situation is “brokers are healthy because there is nothing to do”.

In the past 2 years, brokerage companies have drastically reduced staff. The general situation decreased by 60-80% of employees, and the brokerage department also had to change jobs. The market has no goods to sell, causing brokerage companies to race to cut back.

After the current period of real estate bottoming out, Mr. Khoi is no longer worried about the market falling, investors cut losses or brokers lose their jobs. “The worry now is having people to sell, if in 2024 the investor sells, he is afraid he won’t be able to recruit in time,” Mr. Khoi said.

He explained the worry with a story from the Hanoi market recently. Types of small apartment projects are sold with good liquidity, prices have increased but many brokerage units are “closed to go play”.

In Ho Chi Minh City, supply is tight or there is some in the high-end segment, but the market Peripheral areas like Binh Duong, Dong Nai and soon Long An, on the contrary, may have a product boom in the near future.

As a brokerage unit, Mr. Khoi hopes to have products sold in the near future. If the legal price is affordable, the investor is not allowed to “price gouge” because the wrong price will stand immediately for several years.

The interest rate level tends to decrease but the real interest rate that customers Payment is still high at 11-12%/year, so it needs to be reduced further so customers can afford to buy.