Shakeout hits Vietnamese real estate in 2023

Some 1,300 property firms withdrew from the Vietnamese market in 2023, up nearly eight percent year on year, reflecting part of the gloomy real estate market last year, according to the General Statistics Office. The unexpected meltdown of the property sector, transforming from a ‘busy’ status to stagnation in a short time, showed the potential uncertainties of the local real estate market. Over the past decade, the real estate market has experienced significant growth, with property prices soaring in several localities. The ongoing real estate downturn is anticipated to weed out unhealthy property firms and weak investors who relied on financial leverage to generate profits, rather than contributing to the development of a sustainable real estate market. The prime minister called on all the stakeholders to be more responsible for mutual benefits and the strong rebound of the real estate market in 2024.