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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