Having passed the bottom of the real estate market, many businesses are announcing plans to acquire projects and land use rights... in order to increase their land reserves.
Laying the groundwork for a new cycle
Despite acknowledging the challenges ahead, after restructuring its entire financial portfolio from short-term to long-term and preparing resources for market recovery, Dat Xanh Group plans to search for and acquire projects in 2024.
Specifically, Dat Xanh will accelerate the acquisition and accumulation of land plots of 100-200 hectares nationwide, with complete legal documentation, to develop projects in 2024-2025. The company also plans to finalize the legal procedures for 8 key large-scale projects, preparing 20,000 units in densely populated areas such as Ho Chi Minh City and Binh Duong .
“Currently, market demand for the mid-range housing segment is very high. Dat Xanh Group’s upcoming projects will be eligible for sale in the 2024-2025 period, aiming to anticipate and meet the large market demand, creating breakthrough business results for the company,” said Mr. Luong Tri Thin, Chairman of Dat Xanh Group.
Mr. Pham Thu, Chairman of the Board of Directors of Saigonres Group, also stated that the business strategy for this year is to expand mergers and acquisitions (M&A) activities, seek clean land funds, and increase capital to implement large-scale projects.
According to Mr. Thu, the company is applying for permits for 26 projects from the parent company and its subsidiaries, stretching from Mong Cai ( Quang Ninh ) to Phu Quoc, with over 1 million square meters of cleared land.
Besides the two aforementioned companies, since the beginning of 2024, many businesses have announced plans to acquire projects and land use rights to increase their land reserves. In his 2023 annual report, Mr. Nguyen Van Dat, Chairman of the Board of Directors of Phat Dat Real Estate Company, stated that this year the company will launch 4-6 large projects, while actively promoting the expansion of its land reserves in Dong Nai, Lam Dong, and other areas, and striving to find new land reserves in Ho Chi Minh City.
Meanwhile, earlier this year, An Gia Real Estate Group also announced it was seeking opportunities to conduct M&A and expand its clean land bank. The company emphasized its stance of not chasing market trends or acquiring land or projects at any cost. The company will conduct thorough analyses of the land to ensure that when the products are launched onto the market, their prices are affordable for the majority of buyers.
With businesses continuously announcing plans to expand their land holdings, the Vietnam Association of Real Estate Brokers (VARS) calls this preparation for the start of a new cycle in the real estate market. According to VARS, the new cycle will be more closely aligned with demand. In particular, all participants will have realistic calculations that closely match needs and available resources.
The competition is becoming increasingly diverse.
In a recent report, the Dat Xanh Services Institute for Financial and Real Estate Research assessed that the race to acquire land in the market is becoming increasingly diverse. For example, in terms of location, Vinhomes is investing in urban areas in Long An, Can Gio, Cam Lam…; PV Invest is expanding southward with a project on Dai Phuoc Island (Dong Nai); while many southern developers such as CapitaLand, Keppel Land, Phu My Hung… are aggressively expanding northward...
Regarding types of real estate, Vingroup and Ha Do are researching the development of industrial park real estate in Vung Ang (Ha Tinh), Ninh Thuan, etc.; Novaland and Ecopark continue to develop resort real estate in Binh Thuan, Phu Tho, etc.
In terms of scale, Vinhomes is investing in an urban area of over 1,000 hectares in Long An; Phat Dat, An Gia, Dat Xanh, Hoang Huy, Ecopark, Eurowindow, TNG Holdings... are actively "hunting" for large land plots of 50-150 hectares in many localities…
As for investors, the market has seen the emergence of many new players, such as Central Pattana Group (Thailand) entering the retail market in Vietnam; TH Group recently proposed to Lam Dong province to invest in the Dankia - Suoi Vang National Tourist Area Project; and Minh Phu Seafood Group also surprised everyone by announcing its foray into real estate with a social housing project in Ca Mau…
Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, assessed that the recent period has been a phase of purification, transition, modification, and preparation for the next steps of the market, especially the housing market. The new regulations will facilitate businesses in expanding their market and forming partnerships.
Therefore, although there are still many challenges, Ms. Trang Bui believes that this is the right time for businesses to strengthen their acquisition and partnership activities, especially with businesses that have strong financial resources.
According to Cushman & Wakefield's forecast, a large amount of foreign investment capital will flow into the Vietnamese real estate market during the period 2024-2026. Many transactions have been, are in the negotiation process, and show quite positive signs.
Source: https://baodautu.vn/batdongsan/dai-gia-dia-oc-tro-lai-duong-dua-mua-gom-dat-d214600.html
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