Real estate sector poised for transformative growth

Real estate sector poised for transformative growth

Vietnam’s real estate market remains robust amid ongoing challenges, as top industry players unveil strategic plans for 2025 to drive transformative growth.

Major developer Phat Dat Real Estate Development Corp reported revenues of $80.6 million in 2024, more than triple its 2023 performance, even though its total net profit fell by 24 per cent to nearly $20.9 million.

Photo: baodautu.vn

"This year is much better than last; with upcoming projects like Quy Nhon Iconic in Binh Dinh and Thuan An 1 and 2 in Binh Duong, our outlook is more promising than ever," said Phat Dat chairman Nguyen Van Dat.

The Quy Nhon Iconic development has sold 627 units in its first phase, with the second phase expected to qualify for sales by mid-March.

Thuan An 1 and 2 are scheduled to begin sales for block A1 after completing financial obligations by the end of April, with a sales launch anticipated before June.

Similarly, after more than two years of restructuring, southern developer Novaland is set to reinvigorate its business plan with the restart of sales for two new projects in Ho Chi Minh City: Park Avenue and Palm City.

The company anticipates receiving building permits for these projects in March and June, with sales planned for the second and third quarters of the year.

Novaland Group expects to hand over more than 3,000 units this year, with NovaWorld Phan Thiet contributing 31 per cent, Aqua City 27 per cent, NovaWorld Ho Tram 19 per cent, and the remainder stemming from projects in Ho Chi Minh City.

Looking ahead, Novaland Group predicts net revenue from real estate handovers to reach $840 million this year, marking a 153 per cent increase over last year, and anticipates net profit of $56 million.

The company also reports receivables of approximately $3.9 billion, with $548 million expected to be collected in 2025.

Other market players are also adapting to the evolving landscape.

Nam Long Group- a market leader in affordable housing segment - is poised to stimulate profit growth in 2025 through enhanced sales activities in Long An and Can Tho in the Mekong delta region; with legal processes advancing in Bien Hoa, Nam Long Group plans to relaunch its Izumi City venture in the second half of 2025.

Analysts at SSI Research Securities forecast Nam Long’s revenue at $220 million and net profit at $25.08 million for 2025, a 4.4 per cent decrease in revenue accompanied by a 35 per cent increase in profit compared to the previous year.

Meanwhile, Dat Xanh Group has shown promising signs following its restructuring phase, particularly in its legal procedures and project implementation.

Industry analysts at VCBS Securities expect 2026 to mark the profit turning point for Dat Xanh, as the company reinitiates its DXH Riverside scheme and launches subsequent phases of the Gem Sky World urban area after a three-year hiatus.

Dat Xanh Group anticipates an initial selling price for DXH Riverside of around $4,400–4,800 per square metre.

The development is projected to generate approximately $1.08 billion in sales cash flow over the next two years, with net revenue more than doubling to $287.6 million and net profit nearly quintupling to $47.6 million by 2026.

Recent assessments by VIS Rating indicate that investors hold $4.4 billion in corporate bonds maturing in 2025- the highest level in three years, improved bank credit appetite and robust liquidity are expected to mitigate refinancing risks and bolster lending activities.

These conditions are also likely to foster an appetite for mergers and acquisitions, entice foreign investment, and support new stock issuances.

Since late 2024, key markets in Ho Chi Minh City and Hanoi have shown clear signs of recovery, underpinned by proactive government support for credit and swift resolution of legal hurdles.

With enhanced market sentiment and strategic launches, industry experts forecast robust growth in the real estate sector during the third and fourth quarters of 2025.

VIR