real estate

Vietnam’s housing supply reached just seven percent of its pre pandemic levels in 2024, according to report from the Vietnam Association of Realtors…

Official land values have been depressed in the past by laws through which the central government would set land prices once every five years. This, however, caused problems in that officially land values would fall largely out of step with the true market value with buyers either paying extra off the books or land owners refusing to sell altogether.

Of note, in September, Novaland recorded its worst half year on record after audited financial reports found huge discrepancies from what was earlier reported by the company. Specifically, the company’s own financial statements reported a profit of VND 3.5 trillion or US$142.2 million, however, an audit found the company had actually made a loss of VND 7.3 trillion or US$296.6 million. This the company largely blamed on its auditors being overly cautious…

Year-to-date, the real estate industry has attracted 64 projects, with cumulative capital reaching approximately US$5.23 billion, reflecting strong interest from foreign investors despite fluctuations in monthly capital inflows…

At the end of September outstanding debt in the real estate industry was up 9.15 percent since the end of 2023 and this is raising concerns that risks that have been prevalent over the last couple of years in the housing industry may be being transferred to the banking industry…

A Ho Chi Minh City Inspectorate investigation has found that a number of prime pieces of real estate in the city that were owned by the state were leased without an auction, breaching public asset management regulations…

The publication goes on to lament the lack of affordable housing which has become a recurring theme in local media as the housing market thaws but not for everyday Vietnamese…

Vietnam real estate giant Novaland has banked its worst half year on record after audited financial reports found huge discrepancies from what was earlier reported, The Investor has reported. Specifically, the company’s own financial statements reported a profit of VND 3.5 trillion or US$142.2 million, however, an audit found the company had actually made a loss of VND 7.3 trillion or US$296.6 million…

In March, KBC’s management board said it anticipated receiving investment approval for two projects by June 2024, namely the Trang Due 3 Industrial Park and Trang Cat Urban Area in Hai Phong City. This would have given the firm’s bottom line a significant boost. However, this did not come through with a report by SSI Research released on August 8, suggesting that the Trang Due 3 Industrial Park was unlikely to be completed this year…

For example, in financial reports compiled by Saigon Real Estate Corporation, VND 76.6 billion in revenue was reported, however, after audit that number was reduced to VND 60.2 billion. It also saw a self-reported  profit of VND 2.4 billion become a loss of VND 23.4 billion…

Of note, Vietnam’s real estate market is not in good shape and hasn’t been for almost two years now. Though reports of an imminent recovery of the real estate sector have become common in local media, the reality is that these rising debt levels would suggest there is still a long way to go…

Of note, Vietnam’s real estate industry has been struggling for the last two years in the wake of the Evergrande crisis in China in 2022. This led Vietnam to take a long hard look at its own real estate industry in which it found the prevalent misuse of investor funds, particularly those acquired through the bond market, and that a number of real estate firms were grossly over-leveraged.