If in the third quarter, many real estate businesses were still confused and had no plans to launch projects, then in a short time, these units changed their plans and announced the opening of products because the market was recovering well.
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| Eco City project will be opened for sale by Five Star Group in November 2024 |
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Thang Loi Real Estate Group (Thang Loi Group) has just announced the opening of sale of Tan Tru Royal Project ( Long An ). According to information from Thang Loi Group, the project has 76 townhouses, which have been completed by the investor.
In the past 2 years, Thang Loi Group has devoted most of its operating plan to restructuring the business to overcome financial difficulties, not launching new projects. The development plan set for 2024 is not to launch any projects, and to launch an apartment project in Duc Hoa district (Long An) in the first quarter of 2025. However, seeing that the market situation is changing positively, the company has launched this project early.
With Novaland , since the beginning of October, the trading floor of this enterprise has begun to receive a large number of customers as well as brokers coming to visit the project model, as well as to trade and buy products. Novaland said that the legal procedures of the two projects, Aqua City (Dong Nai) and the project in Ho Tram (Ba Ria - Vung Tau), have been cleared, so the enterprise decided to open sales of new products at the two projects in November 2024.
The fact that many real estate businesses change their business plans and launch projects that are not in the original plan shows that there is great pressure forcing them to change.
It is known that from 2023 to now, this enterprise must stop new sales activities, dissolve the enterprise's brokerage floor as well as the associated floor. The plan that the enterprise sets out in 2024 is only to complete legal procedures, accelerate debt restructuring, restore construction and hand over projects and products previously sold to customers, but not to open new products for sale.
Five Star International Group also announced that instead of opening a new project in the first quarter of 2025, the company will open for sale hundreds of villas at the Eco City Project (Long An) in the fourth quarter of 2024. Mr. Phung Quang Hai, General Director of Five Star, said that in the previous plan, this company would open for sale a project of more than 70 hectares in Long An, but after reviewing the market as well as the development situation of the company, the Board of Directors decided to open for sale a large quantity of goods in November.
Similarly, Cat Tuong Group also changed its business plan because the original plan was "broken". Accordingly, in 2024, the company's plan is to complete the legal procedures and open the sale of an apartment project with 2,000 apartments in Duc Hoa district. However, up to now, the legal procedures for this project have not been completed.
To salvage the situation, Cat Tuong Group changed its business plan by cooperating with a business in Binh Duong , acting as the developer and launching the Cat Tuong J-Home Project in Thuan An City, with 150 townhouses. Cat Tuong Group said that although this is just a replacement plan and also the first project in Binh Duong province that the business has deployed for sale, it hopes to help the business overcome this difficult period.
Welcome to the new development cycle
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the real estate market in the South is recovering well, but the financial situation of many businesses is still very weak. The fact that businesses are changing their business plans and are forced to launch projects that are not in the original plan shows that there is great pressure forcing them to change. Specifically, the pressure to have activities and projects for sale to generate revenue. Even if the project is difficult to sell, it will still help businesses re-recruit sales staff and arrange for the 2025 plan.
In addition, many large real estate companies, although they do not have new projects for sale, are still changing their development plans. For example, from 2022 to now, Hung Thinh Corporation has not had any new projects for sale, because most of the projects are stuck in legal issues that cannot be cleared, so they focus on completing the development strategy for the next period. Mr. Ngo Huu Truong, Deputy General Director of Hung Thinh, revealed that the company is applying a change strategy according to the 5R model (Right market, Right customer, Right time, Right price, Right product).
Mr. Truong further explained that Hung Thinh needs to focus on products with real value, real housing. Next is to choose the right "drop point" so that the project can be deployed quickly and absorbed well. At the same time, it is necessary to price correctly.
“In the past, when the market was strong, businesses could easily increase prices, but now, it is necessary to cut costs reasonably and set prices appropriately so that the market can easily absorb them. In addition, it is necessary to focus on the right customer segments with high demand. Thus, in addition to macro factors such as state legal policies and local planning, businesses themselves need to re-plan their strategies and develop more systematically to prepare for the comeback,” Mr. Truong shared.
Mr. Vo Hong Thang, Deputy General Director of DKRA Group, predicts that by the end of 2025, the real estate market in Ho Chi Minh City and neighboring provinces will enter a new development cycle, with expectations of more sustainable and vibrant growth.
“Currently, many investors are opening new projects. In particular, the products are all carefully prepared by businesses in terms of legality, capital flow, construction quality and selling price. Another new point is that customers choose to live in them instead of speculating like before. This is a sustainable and safe step for both businesses and customers. Therefore, I think there will be many positive changes in the final stage of 2024, creating a springboard for the market to explode in 2025,” Mr. Thang explained.
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