There are only four names among real estate firms which have capitalization value of between $300 million and $1 billion.

After the strong investment in 2017, the real estate market turned quiet. Analysts said the market has become immovable because the State Bank has tightened credit. The legal problems and investors’ cautiousness have also created dark parts of the picture about the real estate market.

Binh Duong and Dong Nai were two provinces which attracted FDI capital into IZ real estate. Because of this, a high number of laborers flocked to the localities, which pushed up supply and apartment rents up.

In Dong Nai province, the improved infrastructure conditions in recent years helped make the average apartment selling price to $1,150 per square meter, the second highest level in the south, just to HCM City.

There are only four names among real estate firms which have capitalization value of between $300 million and $1 billion.

In addition to Binh Duong and Dong Nai, Long An province is now considered a new choice for industrial real estate investors.

It is expected that the strong development of industries in Long An will prompt a high number of workers to flock to the province. Meanwhile, there is still no apartment supply. As for house supply, there are 3,352 houses with the average selling price of $1,368 per square meter, which is even higher than in Dong Nai.

In this tendency, in terms of geographical position, Khang Dien, Dat Xanh and Nam Long have certain advantages as they focus on developing products in HCM City and neighboring areas.

Dat Xanh has 16 years of experience and it is strong at brokerage, while its projects are located in places suitable to the needs of buyers.

At Dat Xanh, inventories just account for 30 percent of total assets. 40-60 percent of Dat Xanh’s revenue annually comes from real estate brokerage. Therefore, 46 percent of total assets lie in receivables to make a deposit for brokerage operation.

As for Phat Dat, its housing land plots are located in Binh Dinh, Quang Ngai and Kien Giang. The group also has a project in Ba Sang Isle in district 9, HCM City, but this is an ecotourism complex, not a residential quarter.

Both Nam Long and Khang Dien follow a strategy on developing 20 hectare or larger urban areas. Since the areas comprise entertainment areas, hospitals and schools, it would be easier to sell than projects with only houses.

While Khang Dien focuses on HCM City market, Nam Long has 70 percent of its land bank located in Waterfront in Long An and Paragon in Dong Nai.

Linh Ha 

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