A number of real estate companies have recently released their consolidated financial reports for the third quarter of 2024 and the first nine months of the year, showing a strong rebound in real estate brokerage revenue and commissions earned from recently sold new projects. This is seen as a sign that transactions in the real estate market are starting to become active again.

Real estate brokerage revenue has increased amidst a sharp rise in apartment and land prices in Hanoi and Ho Chi Minh City in recent months. In the capital, apartment prices have reached hundreds of millions of VND per square meter, even in suburban areas, while auctioned land in outlying regions has also skyrocketed to hundreds of millions of VND per square meter.

In its recently released consolidated financial report, in the third quarter, Dat Xanh Group Joint Stock Company (DXG), chaired by Mr. Luong Tri Thin (Mr. Luong Ngoc Huy), recorded real estate brokerage service revenue of nearly VND 353 billion, almost 2.6 times higher than the same period last year. For the first nine months of the year, DXG achieved nearly VND 829 billion, almost 2.1 times higher than the first nine months of 2023.

DXG's revenue from the sale of apartments and land plots in the first nine months also reached over 2,172 billion VND, compared to 1,733 billion VND in the same period last year.

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Many real estate businesses have reported a sharp increase in brokerage revenue. Photo: Nam Khanh

Not only DXG, but several other companies also recorded a significant increase in real estate brokerage revenue.

CenLand Real Estate Joint Stock Company (CRE), chaired by Mr. Nguyen Trung Vu, also recorded a significant increase in cumulative real estate brokerage revenue in the first nine months of 2024 compared to the same period last year, reaching over 1,043 billion VND, compared to 618 billion VND.

CenLand reported a profit of nearly VND 16 billion in the third quarter of 2024, compared to nearly VND 564 million in the same period last year. Cumulative profit for the first nine months reached nearly VND 32 billion, compared to over VND 1.3 billion in the first nine months of 2023.

Instead of "losing money on about 2-3 apartments each month to keep the company afloat" as in 2022 and early 2023, as the chairman of CenLand shared, brokerage revenue has now helped the company grow quite strongly.

Khai Hoan Land Group Joint Stock Company (KHG), chaired by Nguyen Khai Hoan, also reported that its real estate brokerage revenue in the third quarter of 2024 more than doubled compared to the same period last year, from VND 19.4 billion to over VND 41.1 billion. Cumulative revenue for the first nine months reached over VND 91 billion, compared to nearly VND 46.8 billion.

Danh Khoi Group Joint Stock Company (NRC), chaired by Mr. Le Thong Nhat, also recorded real estate brokerage revenue in the third quarter and the first nine months of 2023 increasing by nearly 23% and nearly 29% respectively, reaching nearly VND 1.3 billion and over VND 3.8 billion…

These are quite positive signs for many real estate businesses and the property market as a whole, because about a year ago most were still mired in difficulties.

In the fourth quarter of 2023, Khai Hoan Land reported a 97% drop in profit compared to the same period last year. This was due to a significant decline in real estate brokerage revenue, which resulted in KHG's core business operating in a negative state.

Like most other real estate businesses, CenLand also experienced a difficult year in 2022 as bank credit was tightened, fundraising channels through bonds were controlled, and interest rates rose sharply, putting significant pressure on homebuyers and investors.

Dat Xanh Group also faced significant difficulties with a layoff of 4,000 employees over two years (2022-2023). This was a common situation for most real estate brokerage businesses, with many having to close down or suspend operations, resulting in numerous brokers losing their jobs and changing professions.

Real estate tycoon Hano-vid has total assets of 41,000 billion VND, but its profit is very low, barely below 8 billion VND. Hano-vid's liabilities increased sharply, from 23,324 billion VND in the same period to 35,824 billion VND.