The industrial real estate sector has been holding steady recently. (Photo: tinnhanhchungkhoan.vn) Many real estate firms are optimistic about the future, announcing plans forland development and new project constructions to earn higher profits in 2022.
Notably, Hoa Phat Group announced a land fund of 2,000 ha for this year,including 700 ha for city projects.
Dat Xanh Group has 2,310 ha with two projects under construction, Opal ParkView and Opal Park City, which will be on sale in 2023.
DRH Holdings JSC sets a profit target of 212 billion VND (9.3 million USD) in2022, more than 13 times higher than the figure in 2021.
Development Investment Construction JSC aims to make a pre-tax profit of 1.9trillion VND, up 59 percent year-on-year.
Hai Phat Homes JSC is going to put units up for sale in several provinces,including 1,000 in Quang Ninh, 500 in Hoa Binh, its project HP Intermix in BacGiang and many others in Cao Bang and Lao Cai.
Century Land JSC plans to raise its capital, from 2 trillion VND to 4.6trillion VND, through the issuance of 262 million new shares and estimates itsrevenues at 10-12 trillion VND in 2022, about double last year’s figures.
Le Thi Phuong Lan, head of the Investment Consulting Department at SavillsHanoi, believes that the Vietnamese real estate market is becoming moreappealing not only to domestic investors but also foreign investors.
Some international organisations have upgraded the country from a frontiermarket to emerging market or strategic market, resulting in more capitalinflows.
David Jackson, general director of Colliers Vietnam, shares this view. Hesaid investors with deep pockets sought investment opportunities in the marketas they believe a new business cycle is coming.
Infrastructure projects in provinces and the economy’s recovery would be thedriving forces behind the market pick-up.
Do Quy Duy, business manager of Hai Phat Homes, opined that there would beoptimistic investors and cautious investors in the market.
The former would put their money in real estate projects located in primelocations and resort projects with long-term legal ownership.
Meanwhile, the latter would prefer real estate projects with high liquidity inbig cities such as Hanoi and HCM City.
Nguyen Van Ngoc, director of RB Land JSC, underlined this year as a bright yearfor the market but warned of “fear of missing out” (FOMO) on cash flows in thecoming months.
He attributed the surge of FOMO cash flows to the proliferation of F0 investorsand the sales of stockpiled products around mid-year.
It is also worth noting that two winning bidders in Thu Thiem Land Auction havepledged to come up with the money to pay for their lands purchased.
Experts believe the pledge, if kept, will boost investor confidencein the market, generating a positive impact on real estate stocks.
“Their fulfilment of pledge would boost the market morale, uplifting realestate stocks,” said economic expert Dinh Trong Thịnh.
He also forecast that the market would continue to grow thanks to theeconomy’s recovery and capital inflows by foreign investors.
Notably, industrial real estate, resorts and residential housing were among thesectors expected to bring high profitability.
“Accordingly, real estate stocks still have ample room for price rises,” headded.
According to SSI Securities Corp., real estate firms led the bond market inissue volume in 2021.
They issued 318 trillion VND worth of bonds, accounting for 44 percent of totalissues, up 66.3 percent year-on-year.
The number of real estate issuers increased from 141 in 2020 to 193 last year./.
VNA
