Statistics on semi-annual business results in 2024 of 92 real estate businesses with shares listed on the stock market show that 25% of businesses are at a loss, 75% of businesses are profitable. Among profitable businesses, more than 60% of businesses recorded higher profits than the same period last year. And compared to this year's plan, more than 30% of businesses completed over half of the plan and approximately 10% completed the plan.
Vinhomes is still at the top with more than VND 13,600 billion in profit after tax . Nam Long Group, after a loss in the first quarter, recorded a profit in the second quarter and the accumulated profit for the first 6 months of 2024 is a positive number, thanks to the transfer of 25% ownership in Paragon Dai Phuoc Joint Venture Company to Japanese partners. Similarly, Phat Dat (code PDR) recorded more than 102 billion VND in profit after tax in the first half of 2024, mainly thanks to the sale of affiliated companies.
In the first half of 2024, Novaland also reversed course when reaching 945 billion VND in profit (the same period in 2023 lost more than 200 billion VND). Talking about the cash flow plan so that Novaland can repay principal and interest to bondholders and other lenders, according to sharing from Mr. Duong Van Bac, Chief Financial Officer (CFO) of Novaland Group, during the process. restructuring, the group estimates that the time of strong cash flow and surplus to repay debt will be around the first half of 2026.
The basis for this assessment comes from the progress of NovaWorld Phan Thiet, NovaWorld Ho Tram projects and part of the projects in Ho Chi Minh City, which are expected to have sales contracts by the end of 2024, focusing on construction work. As for cash flow from new sales, Novaland forecasts that the market at the end of 2025 will be better than this period, and to be more exciting, it will take many changes from the first quarter of 2026.
Experts evaluate the real estate market and have a strong launch pad to get ready to return after a long difficult period. Most recent industry reports from securities companies and market research units say that sales of businesses in this industry will improve strongly in the last two quarters of the year thanks to increased sales. The house has recovered since the end of last year.
Yuanta Vietnam Securities Company (YSVN) issued a report, which forecasts that the group of 20 largest real estate developers will record a 41% increase in revenue and an 8% increase in profit after tax this year. Notably, the prospect of FDI inflows is a positive signal for a year of economic recovery, foreign investors' confidence seems to be rising. Yuanta expects strong FDI inflows to help shorten the recovery time of the real estate sector from 5 years in the previous cycle (2008 - 2013) to only 3 years in this cycle (2022 - 2025).
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, commented that the fulcrum for real estate recovery is three new laws related to the real estate market (Land Law 2024, Real Estate Business Law 2023 and Law on Real Estate Business 2023 and Law on Real Estate Business 2023). Housing 2023) will be implemented from August 1, 2024, 5 months earlier than initially expected, and lending interest rates at a reasonable level will stimulate demand for home buying. Businesses with good products will sell better.
In particular, completing the legal corridor will streamline the project licensing process, especially in terms of investor selection and clarifying principles for land valuation, market price, and valuation methods. The impact of the new laws on the profit margins of real estate businesses is not expected to be significant, likely fluctuating between 5-10%, but this change could create a positive trajectory for market.
