Property developers cut down their workforce

Property developers are laying off their staff in droves and are delaying salary payments for some to survive an idle market. Analysts expect difficulties that linger until the end of next year.

Property developers/companies lay off staff in droves

For the last several weeks, Nam in Hanoi has been living off unemployment insurance after being laid off by a property company in November. Speaking to reporters, he said: "I was among 60% of employees that were fired. Many of my colleagues have stopped applying for new jobs in the real estate firm due to a real estate recession". At the same time, Minh, a broker for a real estate agency in District Hai Ba Trung, said he hadn't paid for over six months.

"The staff retained in property companies struggled to sell the property due to low demand. Even after several months, they couldn't have any transactions and do without commissions. Therefore, half of my colleagues have to resign and change other jobs", Minh added.

Property developers are going through a brutal "winter" as demand plunges amid market uncertainties. Industry insiders expect the real estate market to slump and end booming sales on record in the previous years. 

Hien, a marketing officer for a real estate developer in District Nam Tu Liem, said she got to cut salaries by nearly 40% until further notice because her company was facing financial difficulties. 

Reduction in sales volumes but strong demand for rental accommodation in Hanoi

According to the strong housing market conditions from 2020 to 2022, this year has been tumultuous for the property market. Interest rates have risen rapidly; property developers have struggled to sell their property, leading to price falls and reduced sales volumes.

While selling prices for properties have dropped, rental prices have increased due to escalating demand from overseas migration and fewer first-home buyers. The insufficient supply of rental stock has afforded landlords the scope to lift rents. 

A model apartment in Starlake

It is predicted that in 2023, the demand for rent will increase even more because Samsung's R&D center is finishing, and foreign professors and engineers will come to Hanoi, resulting in rising demand for rentals. 

Real estate agencies can anticipate this demand, recommending them the most suitable rental apartments and boosting revenue for companies. 

One of the potential areas to promote rentals is Starlake apartment because it is near the Samsung R&D center, developed by Daewoo Group, with modern, ample facilities that will make customers satisfying. 

More: Starlake residences offer a new level of unlimited design creativity

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