Real estate enterprises continue to grapple with a host of challenges, forcing them to change business and management plans, including debt restructuring, scaling down production and investment, streamlining their operations, and suspending new projects, according to the Ministry of Construction (MoC).

The number of real estate businesses declaring bankruptcy or dissolution in 2022 rose 38.7 per cent compared to 2021.

However, the number of newly-established enterprises and businesses resuming operations in the sector also increased last year, according to the ministry. There were 8,593 new enterprises and 2,081 resuming operations, year-on-year growth of 13.7 per cent and 56.7 per cent, respectively.

Analysts have warned that housing supply remains limited and transactions are not expected to boom again.

The MoC has proposed that relevant ministries, agencies, and localities resolutely implement measures assigned by the Prime Minister to help tackle the difficulties facing the real estate market and housing development.