According to the HCM City People’s Committee, the city’s real estate market finished the gloomy period in the first six months of the year after a series of policies have been laid down, the lending interest rates have decreased and people’s and businesses’ capital accessibility has been improved.

The city’s total revenue from the real estate sector in the first six months of the year was estimated at VND123.887 trillion, up 6.1 percent over the same period last year. Though the growth rate was still low, it is still described as ‘encouraging’.

The housing supply in HCM City has increased with 9 commercial housing projects getting the approval for development in the first six months of the year, and one project getting licensed for construction. Also, there are 27,500 apartments belonging to many projects are under execution. 

Though market has shown signs of recovery, big players in the real estate market in HCM City and the southern region still cannot overcome difficulties.

Its finance report for the first half of the year showed that Dat Xanh Group got an accumulated revenue of VND2.19 trillion, while the post-tax profit of the holding company reached VND64 billion, a slight increase compared with the VND61 billion worth of profit of the same period last year.

DatXanh’s inventories are worth VND13.896 trillion, accounting for 48 percent of the enterprise’s total assets, including the VND11.152 trillion which are the land use fees and costs for compensation for site clearance, and construction costs for unfinished projects, namely Gem Sky World (Dong Nai), Gem Riverside (HCM City), Dat Xanh Home Park City (Binh Duong) and Regal Legend (Quang Binh).

In the second quarter 2024, Dat Xanh Group’s post-tax profit was modest, just VND93.6 billion, a sharp fall of 40 percent compared with the profit of VND157 billion it gained the same period last year.

As for Novaland, its newly released Q2 finance report showed that the realtor got VND1.55 trillion worth of revenue and VND945 billion in profit. The figures represented a considerable improvement in business results, but its inventories remain relatively high, worth VND142.025 trillion, up VND3.09 trillion over the same period last year.

Regarding the inventory structure, real estate products under construction are worth VND134 trillion, while finished products VND8.38 trillion.

A representative of Novaland revealed that only from 2026, will the company get the cash flow back and have surplus high enough to pay debts and bonds.

Meanwhile, An Gia Group reported the revenue of VND169 billion for the second quarter, a sharp fall from the VND1.676 trillion last year. Its post-tax profit was just VND1.6 billion, down 99 percent.

Not only performing badly, An Gia’s inventories have exceeded VND1 trillion, mostly in unfinished projects, such as Westgate in Binh Chanh district, HCM City, The Standard in Binh Duong, Signial in district 7, HCM City and The Song in Vung Tau City.

Businesses complain

As of the end of the second quarter 2024, Phat Dat Corporation’s post-tax profit had remained modest, just VND50 billion, a decrease of 82 percent from the profit of VND275 billion the same period last year.

Explaining the sharp profit decrease, Bui Quang Anh Vu, CEO of Phat Dat Corporation, said difficulties in the national economy are still existing and the investment and development real estate projects are meeting some troubles.

Phat Dat Corporation’s inventories have increased to VND12.532 trillion, mostly in half-finished projects, including River City in district 7, HCMC, Thuan An 1 and Thuan An 2 in Binh Duong, Tropicana Ben Thanh Long Hai and Serenity Phuoc Hai in Ba Ria –Vung Tau.

Quoc Cuong Gia Lai JSC has recently stirred up the public with rapid-fire hot news about the personnel changes. Nguyen Thi Nhu Loan, its former CEO, has been prosecuted for violations in managing and using the public land plot at No 39-39B Ben Van Don in district 4.

The newly released prospectus showed that in the second quarter 2024, Quoc Cuong Gia Lai got a revenue of VND26.5 billion, or 40 percent lower than the second quarter 2023. The realtor incurred the post-tax loss of VND17.3 billion, the highest loss since 2012.

Nguyen Quoc Cuong, CEO of Quoc Cuong Gia Lai, who has been appointed to the post after the arrest of Loan, explained that the real estate market is still in big difficulties. Its inventory value is VND7.028 trillion. Meanwhile, the electricity output remains low and rubber has just been exploited.

Anh Phuong