Many real estate firms have released their third-quarter and 9-month financial reports, showing satisfactory business results with revenue from real estate brokerage services bouncing back and commissions mostly coming from newly launched projects.

The increase in revenue from brokerage services is understood as the result of a price hike, especially in Hanoi and HCM City. 

Dat Xanh Group’s (DXG) revenue from brokerage services reached VND353 billion in the third quarter, or 2.6 times higher than the same period last year. The figure was VND829 billion for the first nine months of the year, or 2.1 times higher than the first nine months in 2023.

Its revenue from apartment and land reached VND2.172 trillion in the first nine months, higher than the VND1.733 trillion of the same period last year.

CenLand has reported revenue of VND1.043 trillion from brokerage service (it was VND618 billion in the first nine months 2023).

Real estate firms made a profit of VND16 billion in the third quarter (VND564 million) and VND32 billion in the first nine months (VND1.3 billion).

The sharp rise in revenue from brokerage services has helped the business grow rapidly.

Khai Hoan Land (KHG) saw brokerage service revenue increasing by twofold in the third quarter (VND19.4 billion vs VND41.1 billion), and increasing from VND46.8 billion to VND91 billion in the first nine months.

As for Danh Khoi JSC (NRD), the brokerage service revenue in the third quarter and nine months of the year increased by 23 percent and 29 percent, to VND1.3 billion and VND3.8 billion, respectively.

The figures showed encouraging business results for real estate firms, which were bogged down in difficulties a year ago.

In the fourth quarter 2023, for example, Khai Hoan Land reported a 97 percent decrease in profit, which was attributed to the sharp fall in brokerage service revenue.

CenLand also had a tough year in 2022 like most other real estate firms as lending was tightened, capital mobilization through bond issuance was controlled and bank loan interest rates increased, thus putting pressure on both buyers and investors.

The difficulties faced by Dat Xanh forced the real estate firms to lay off 4,000 workers within two years, 2022-2023. Many real estate firms had to shut down or suspend operation, leaving brokers jobless.

Anh Phuong