The Ho Chi Minh City Real Estate Association (HoREA) has proposed the introduction of mechanisms to help real estate businesses access credit to boost purchasing power and aggregate demand in the market.

The real estate market continued to face many difficulties in the first half of the year, especially in gaining access to credit, issuing bonds, and mobilizing capital, according to the Ministry of Construction.

As a result, many businesses lacked capital and had to delay or postpone the implementation of projects as well as cut their workforce.

In the first five months of the year, 88,000 real estate businesses withdrew from the market, a year-on-year rise of 22.6 per cent. The number of newly-registered enterprises, meanwhile, fell 50 per cent compared to the same period last year.

Some 25 commercial housing projects nationwide with 10,000 units were completed in the first half, equivalent to 50 per cent of the number in the second half of 2022.

There are now 659 housing projects being implemented, down nearly 40 per cent compared to the second half of 2022.

Only 23 projects were approved in the period, a decline of 71 per cent against the second half of last year.