In the latest updated report of An Binh Securities Company (ABS) as of August 2, although the business results of the second quarter of 2024 of the real estate group on the stock exchange improved compared to the first quarter of the year, the total profit of the whole industry in the first 6 months still decreased significantly, mainly due to the time of handing over real estate and recording revenue and profit of projects.

The real estate group recorded a total of more than VND13,300 billion in after-tax profit in the second quarter, up 4.2% compared to the first quarter, but down 17.9% compared to the same period last year. Vinhomes remained the mainstay with quarterly profit reaching VND10,600 billion.

The financial reports of many real estate companies have shown a revival. For example, No Va Real Estate Investment Group Joint Stock Company - Novaland (Code NVL) recorded real estate transfer revenue of nearly VND 1,891 billion in the first 6 months, up 37% compared to last year. Construction Development Investment Joint Stock Corporation - DIC Corp (Code DIG) recorded net revenue in the second quarter of more than VND 821 billion, 2.2 times higher than the same period last year, thanks to the construction and real estate sectors.

Nam Long Investment Joint Stock Company (Code NLG) saw its second quarter revenue and profit decrease compared to the same period (reaching 457 billion and 68 billion VND), but it plans to hand over about 2,660 products in the second half of the year to record profits.

Dr. Nguyen Duy Phuong, Investment Director of DG Capital, stated that although some businesses had good sales in the first 6 months of the year, they did not record revenue in the first quarter, causing lower results on their financial reports.

Overall, the real estate industry has a strong launch pad to bounce back after a long period of difficulty. Most industry analysis reports from securities companies and market research units recently released believe that the business results of real estate companies will improve strongly in the second half of 2024 and will "make waves" in 2025 thanks to home sales recovering from the end of last year.

According to the assessment of analysts at Vietnam International Securities Company (VIS), opportunities for real estate stocks are still ahead, but it may take more time, especially since the purchasing power in the real estate market is not as expected. Many businesses are also restructuring assets and paying off bonds. Therefore, it may take more time, at least next year, for the general operations of real estate businesses to become healthy and stable again.

According to the forecast of Yuanta Vietnam Securities Company, in 2024, the group of 20 largest real estate developers will record a 41% increase in revenue compared to last year, and an 8% increase in after-tax profit. Notably, the prospect of FDI capital inflows is a positive signal for a year of economic recovery, and foreign investors' confidence seems to be on the rise. Yuanta expects strong FDI capital 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).

In particular, experts assess that the completion of the legal corridor will streamline the project licensing process, especially in terms of investor selection and clarifying the principles of land valuation, market prices, and valuation methods. The impact of the new laws on the profit margins of real estate businesses is expected to be insignificant, likely fluctuating between 5-10%, but this change can create a positive trajectory for the real estate market, as it contributes to creating a transparent and sustainable market in the long term.