Waiting for the real estate stock to make a splash.

The financial statements of many real estate businesses have shown a resurgence. Novaland (NVL brand) recorded real estate transfer revenue of nearly 1,891 billion for six months, up 37% from last year. Construction Development Investment Corporation - DIC Corp (DIG brand) reported second quarter revenues reached more than 821 billion VND, 2. 2 times compared to the same period last year, thanks to construction and real estate.

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

Mr. Nguyen Duy Phung, Investment Director of DG Capital expressed the view that some businesses despite good sales in the first 6 months of the year did not record revenues as early as Q1, making results on financial statements lower.

Overall, the real estate industry is on strong footing to bounce back after a long period of difficulty. Most recently released sector analysis reports from securities firms and market research units suggest that business results for real estate companies will improve dramatically in the second half of 2024 and will "make waves" in 2025 thanks to home sales which have recovered since the end of last year.

According to analysts of the Vietnam International Securities Company (VIS), opportunities for real estate stocks are still ahead, but it may take more time, especially as purchasing power in the current real estate market is not as realistic as expected. Many businesses are also restructuring assets and paying off bonds.

According to forecasts by Vietnam's Yuanta Securities Company, in 2024, the group of 20 largest real estate developers will record a 41% increase in revenue over last year, an 8% increase in profit after tax. economicYuanta expects strong FDI inflows to help shorten the real estate sector's recovery time from 5 years of the previous cycle (2008-2013) down to just 3 years in this cycle (2022-2025).

In particular, experts assess that the completion of legal corridors will streamline the project licensing process, especially in terms of investor selection and clarification of land valuation principles, market prices, pricing methods. The impact of new laws on the profit margins of real estate enterprises is expected to be insignificant, likely to fluctuate 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.