Real estate firms embrace share issuance for strategic capital mobilisation

Real estate firms embrace share issuance for strategic capital mobilisation

This approach comes as the real estate market gradually recovers, prompting firms to explore various funding methods to expedite project timelines.

Buildings of the Opal Boulevard apartment project, which is developed by Đất Xanh Group in HCM City. — Photo datxanh.vn

To bolster their financial capabilities, many real estate companies are increasingly viewing share issuance as a strategic capital mobilisation approach. 

This approach comes as the real estate market gradually recovers, prompting firms to explore various funding methods to expedite project timelines.

Leading real estate corporations are announcing plans to release substantial quantities of shares to enhance liquidity for key projects. Whether through private placements or offerings to existing shareholders, these initiatives are seen as vital for strengthening financial foundations while aligning with the government's push for institutional reform and comprehensive infrastructure investment. 

This trend also marks a shift towards real demand, reducing speculation in the market.

Recent developments illustrate a clear trend among large real estate firms to raise capital through the stock market. 

Dat Xanh Group has approved a plan to issue 93.5 million shares at a price of VNĐ18,600 per share, aiming to raise nearly VNĐ1.74 trillion (US$65.9 million). This capital will be allocated for the DatXanhHomes Parkview project in HCM City.

Similarly, DIC Group has announced a plan to sell 150 million shares to existing shareholders at VNĐ12,000 each, with expected proceeds of VNĐ1.8 trillion. These funds will support two strategic projects: the Cap Saint Jacques complex and a commercial residential area in Vị Thanh Ward, Cần Thơ City.

In the northern region, Thang Long Investment Group plans to issue over 193 million shares, targeting about VNĐ1.9 trillion in capital, primarily for the second phase of the Vườn Vua Resort & Villas project in Phú Thọ Province.

Furthermore, Hanoi South Housing and Urban Development Corporation has revealed plans to issue more than 16 million shares for a project in Duy Tiên, while Hoang Huy Financial Services Investment Corporation aims to raise over VNĐ2 trillion through a 200 million share offering for two major projects in Hải Phòng.

Buildings of the Opal Boulevard apartment project, which is developed by Đất Xanh Group in HCM City. — Photo datxanh.vn

Dr Bùi Đức Hưng, a former director at the Ministry of Construction, predicted that the real estate market's recovery would be reinforced by two key factors: synchronised infrastructure investment and timely institutional reforms. 

On August 19, the nationwide inauguration and groundbreaking of 250 significant projects marked a pivotal moment, showcasing the Government's commitment to enhancing connectivity and regional economic development.

With an estimated investment value nearing VNĐ1.3 quadrillion, this unprecedented surge in aggregate demand was anticipated to contribute approximately 18 per cent to GDP in 2025 and over 20 per cent in subsequent years. 

This development was expected to stimulate credit supply and foster economic growth, generating millions of jobs while balancing economic expansion with social welfare, Hưng said. 

The legal environment for the real estate market is also gradually improving. Amendments to the 2024 Land Law are being proposed to better align with current realities, reflecting the government's proactive governance and quick response to create a transparent and stable investment climate for businesses and citizens.

Many research organisations forecast continued positive signals for the real estate market in late 2025 and early 2026. 

In Hà Nội alone, approximately 38,000 housing products are expected to be offered this year, indicating a resurgence in market activity. As transactions increasingly cater to genuine housing needs and long-term investments, the market is shifting away from speculative practices.

According to a survey by Batdongsan.com.vn, 64 per cent of recent homebuyers are purchasing properties for personal use, while only 36 per cent are doing so for investment.

This shift indicates a significant change in consumer sentiment, prioritising practical utility over short-term profit expectations. 

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