In the first six months of the year, more than 1,400 real estate developers completed dissolution procedures, a 120% increase compared to the same period last year.
In its report on the economic situation in the first half of the year, the Statistics Department (Ministry of Finance) stated that the number of real estate businesses withdrawing from the market has shown a strong upward trend.
During the first half of the year, the market recorded 1,463 real estate businesses completing dissolution procedures, compared to over 660 units in the same period last year. On average, 243 businesses closed down each month.
In addition, the number of businesses in the sector returning to operation also fell sharply to over 2,400 units, a 12% decrease. On the other hand, nearly 3,200 new real estate businesses were established, a 23% increase compared to the same period.
The withdrawal rate of real estate developers rose amid a sharp decline in purchasing power and cautious market sentiment as home loan interest rates escalated. Data from real estate services firm OneHousing indicated that real estate market liquidity showed signs of slowing down in the first half of this year. The average absorption rate of primary projects reached about 50-60%, down sharply from over 80% in the same period last year.
Similarly, the Vietnam Association of Realtors (VARS) reported that in the first six months, about 60,000 products were launched onto the market. The absorption rate reached approximately 58%, corresponding to 35,000 transactions. According to VARS, although purchasing power has decreased compared to the previous period, the transaction volume of tens of thousands of products shows that cash flow is still circulating, focusing more on certain asset groups.
Real estate in the eastern area of Ho Chi Minh City. Photo: Quynh Tran
Real estate in the eastern area of Ho Chi Minh City. Photo: Quynh Tran
Several real estate company leaders also recognized that the market this year faces many challenges. At the annual general meeting of shareholders in late June, Mr. Nguyen Quoc Cuong, General Director of Quoc Cuong Gia Lai, stated that 2026 would continue to be a difficult period for the real estate market. He noted that purchasing power remains weak and interest rates tend to rise, while supply is highly abundant and products are diverse following the legal untangling process for numerous projects.
“The absorption rate of real estate products in Ho Chi Minh City in particular and the country in general is relatively low, while prices are still anchored at very high levels,” he said, sharing that he has not seen any opportunities this year.
Similarly, Cen Land Chairman Nguyen Trung Vu stated at the shareholder meeting in late May that the company had to step up restructuring as the market entered a period of intense screening. He said the current supply for sale is huge, and buyers are tightening their belts, making sales increasingly difficult and competition among brokers fierce. Meanwhile, whenever developers release products, they “require distributors to make a deposit to secure the inventory for sale.” This has caused liquidity to diverge sharply, narrowing the profit margins of traditional brokerage segments.
In its newly released industry report, MB Securities (MBS) forecast that the real estate market will continue to be gloomy from now until the end of the year due to high loan interest pressure amidst large supply. Currently, lending interest rates for real estate have risen to 13-14% per year, an increase of about 2% compared to the same period.
“Real estate liquidity may continue to be unfavorable as most investors are concerned about interest rates remaining anchored at high levels for a long time,” MBS Research stated.
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