VietNamNet Bridge - The warming up of the domestic real estate market has helped many real estate developers jump up at the top of the list of stock millionaires. However, many of them have seen their stock assets decline.

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The warming up of the domestic real estate market has helped many real estate developers jump up

After many years of economic recession, the real estate market began warming up in 2015, which could be seen in the higher number of apartments sold in Hanoi and HCM City, lower inventory level and higher outstanding loans provided to fund real estate projects.

A report of the Ministry of Planning and Investment (MPI) showed that the number of newly set up real estate firms by November had increased by 80 percent compared with the same period last year, while the number of dissolved businesses had decreased by 30 percent.

The real estate firms’ prosperity has made their owners’ assets increase rapidly. By December 22, Pham Nhat Vuong, president of Vingroup (VIC), which is considered the largest real estate group in Vietnam, had seen his stock assets nearly hitting the $1 billion threshold. His stock assets had increased by VND1.9 trillion to VND22.1 trillion.

After many years of economic recession, the real estate market began warming up in 2015, which could be seen in the higher number of apartments sold in Hanoi and HCM City
Though VIC share prices decreased by 13 percent his year, Vuong’s assets have not decreased thanks to the 109 million shares from the dividend payments. With high stock assets, Vuong is expected to stay firmly at the first position of the list of the 2015 stock millionaires.

The other members of the Pham family, including Pham Thu Huong and Pham Thuy Hang, are also expected to be on the list of top five stock millionaires with their assets up by VND330 billion and VND220 billion, respectively.

Big real estate tycoons are also expected to remain on the list. President of FLC Group Trinh Van Quyet, who holds 123 million FLC shares, has seen his stock asset value increase by VND93.7 billion.

Nguyen Xuan Quang, chair of Nam Long Investment JSC and Tran Thanh Phong, deputy chair of Nam Long, have seen their stock assets up by VND180 billion and VND50 billion, respectively, thanks to the 30 percent share price increase. 

In a similar case, the stock assets’ value of Le Viet Hai, chair and CEO of Hoa Binh Real Estate (HBC), has increased by VND80 billion thanks to the 27 percent share price increase.

Meanwhile, some other big tycoons have seen their stock assets ‘evaporate’. Doan Nguyen Duc, president of Hoang Anh Gia Lai (HAG), who became rich with investments in the real estate sector and later shifted his business focus to agricultural production, experienced a challenging year as the share price dropped dramatically by 50 percent.


VNE