Real estate sector rebounds, companies see profits soar 200-fold

DNHN - In the first nine months of 2024, Vietnam's real estate market has shown positive signs of recovery, with several companies recording impressive profit margins.

In the first nine months of 2024, Vietnam's real estate market has shown positive signs of recovery. During this period, the market experienced a surge in property prices due to rising actual demand and a tightening supply. This led to significant improvements in business performance for many real estate firms in Q3 2024, with some companies posting remarkable profits driven by robust sales or project transfers.

One of the standout performers was Nam Ha Noi Housing and Urban Development Corporation (NHA). In Q3 2024, the company recorded net revenue of VND 24.6 billion, tripling the figure from the same period last year. Its gross profit surged to VND 17.1 billion, up 11.2 times from Q3 2023. Notably, its net profit after tax rose nearly 200-fold, from VND 60.2 million to VND 11.8 billion, thanks to growth in its high-margin real estate business.

Compared to the same period last year, the company's revenue in Q3 2023 mainly came from construction projects, with revenue reaching VND 7.9 billion, significantly lower than this quarter. The strategic shift to real estate has enabled the company to make substantial gains in profit.

Accumulated over the first nine months of 2024, Nam Ha Noi Housing and Urban Development achieved net revenue of VND 119.8 billion and net profit after tax of VND 53 billion, increasing 2.6 times and 60.9 times, respectively, compared to the same period in 2023. With these results, the company has achieved nearly 80% of its revenue target and exceeded its annual profit target by 6%.

Saigon Real Estate Corporation (Saigonres – SGR) also saw a positive recovery in Q3 2024 after a loss-making first half of the year. Quarterly revenue reached VND 57.6 billion, up 218% year-on-year, thanks to a strong increase in project revenue. The company's gross profit reached VND 45.2 billion, up 914% from last year, driven by significant cost-cutting. Consequently, net profit after tax was VND 42.5 billion, a 127.6% increase compared to the same period last year.

However, despite a 150.4% increase in revenue to VND 117.8 billion over the first nine months of the year, Saigonres only achieved a net profit of VND 19.1 billion, a 61.5% drop compared to the same period, due to losses in the first half. Relative to the annual targets of VND 628 billion in revenue and VND 190 billion in pre-tax profit, the company has only completed 18.8% of its revenue target and 13.1% of its profit goal.

Meanwhile, Sonadezi Chau Duc Corporation (SZC), which operates in the industrial real estate sector, maintained stability in Q3 2024. Although net revenue fell by 20.8% to VND 164.7 billion, the company's gross profit remained steady at VND 85.5 billion due to significant reductions in cost of goods sold. Notably, its financial revenue surged by 146.2%, reaching VND 15 billion, contributing significantly to a net profit after tax of VND 59.5 billion, an 8.1% increase year-on-year.

Over the first nine months, Sonadezi Chau Duc recorded revenue of VND 641 billion and net profit after tax of VND 226.8 billion, up 14.6% and 39.4% year-on-year, respectively. With these results, the company has completed 99% of its annual profit target for 2024, within just nine months.

The industrial real estate market is forecasted to continue growing strongly, thanks to major infrastructure projects, particularly in Ba Ria – Vung Tau. These projects will improve connectivity between key economic regions, reducing transportation time and logistics costs, creating favorable conditions for industrial and trade development.

In conclusion, Vietnam's real estate market has witnessed robust growth and recovery over the first nine months of 2024, with many companies reporting outstanding business results. These signs reflect optimism about the market's future prospects, especially as infrastructure and industrial zone projects continue to receive investment and development.

Linh Anh