A series of real estate businesses have set quite high business goals for 2024, with some businesses even striving to grow several times higher than last year.
The most difficult period is over
Novaland experienced 2023 with declining business results since it went public until now. This is also the year that the company has to strain to arrange capital and restructure debt. Up to this point, according to Novaland’s share, the company has completed restructuring its loans and bond debt.
In 2024, the business targets consolidated net revenue of 32,587 billion VND, profit after tax of 1,079 billion VND, 6.9 times higher in revenue and 2.2 times higher in profit compared to the low base level. in 2023. If this goal is achieved, this will be Novaland’s record revenue.
To have billions of dollars in revenue, Novaland plans to hand over products from 14 projects . Half of them are in Ho Chi Minh City, the rest are products of three key projects in Dong Nai, Binh Thuan, Ba Ria – Vung Tau.
However, this ambitious plan depends greatly on legal movements related to the projects the Company is implementing. Mr. Ng Teck Yow, General Director of Novaland, shared that the legal clearance of projects was slower than expected, causing Novaland to fail to fulfill its commitments to customers. This is a huge loss, affecting the brand of the business.
“By all means, the Company must try to overcome, focus on resolving legal issues, perfecting products and projects to hand over to customers,” Novaland’s CEO affirmed.
For Phat Dat, by successfully buying back 2 lots of bonds with a total face value of 800 billion VND at the end of 2023, Phat Dat officially settled all bonds on time and ahead of maturity with a value of 2,500 billion VND, bringing the balance Bond loan debt goes to zero, completely eliminating this debt.
This year, Phat Dat’s goal is to bring in 2,892 billion VND in revenue and 880 billion VND in profit after tax, an increase of 368% and 35.8% respectively compared to 2023. According to the plan, the real estate company This will bring to market 4 key projects: Thuan An 1 and 2 in Binh Duong, Poulo Condor in Con Dao, Cadia Quy Nhon and Bac Ha Thanh in Binh Dinh.
Mr. Bui Quang Anh Vu, General Director of Phat Dat, said that one of the important grounds for Phat Dat to set a high revenue target is because the Company owns a large number of beautiful, legally complete projects. Diverse products, designed to suit tastes, creating high value for the overall development of localities.
Expect the impact of the new law
Along with signs of market recovery in the first months of 2024, a series of real estate giants also quickly launched many plans. Among them, the record must include Vinhomes with a revenue target of increasing more than 15% compared to last year, to 120,000 billion VND (equivalent to 4.77 billion USD); Profit after tax increased about 4.3%, to 35,000 billion VND.
Similarly, Khang Dien House also set a business target for 2024 with revenue reaching 3,900 billion VND, profit after tax reaching 790 billion VND, an increase of 87% and 10% respectively compared to the results achieved last year. As for Nam Long, it aims to bring in 6,657 billion VND in revenue and 506 billion VND in profit, an increase of 111% and 5% respectively compared to 2023. This business also plans to continue to deduct 192 billion VND to pay Dividends, if profits are higher, a maximum of 384 billion VND can be deducted to pay dividends.
Real estate developers are confident, so brokerage businesses are also quite optimistic when building business plans. For example, CenLand plans net revenue of 3,250 billion VND and pre-tax profit of 220 billion VND, 3.4 times and 44.8 times higher than the results in 2023, respectively.
CenLand’s Board of Directors assesses that the changes in the Housing Law 2023, Real Estate Business Law 2023, Land Law 2024 are a big step forward in policy, an important legal framework, and have a positive impact on the market. , investors and customers. The real estate market is expected to be more balanced by 2024 when legal and capital issues are resolved.
However, CenLand’s Board of Directors warns that although the market is expected to have positive changes in 2024, risks still exist, related to the payment flow of large corporate bonds.
Mr. Le Bao Long, Strategy Director of Batdongsan.com, said that legal changes in the past have created major fluctuations in the real estate market. “We expect that with breakthrough policy changes, the market will continue to have positive effects in this cycle, similar to what happened in the past.”
In the period 2023 – 2025, new laws will be implemented, forecast to create 4 major impacts, including: healthy market growth, investor screening, guaranteed consumer rights, system stricter management.
“Customers will benefit from changes to the law. Among them, the two biggest beneficiaries are overseas Vietnamese and people subject to resettlement or compensation,” Mr. Long said.
According to statistics, about 15 – 20% of remittances are invested directly in real estate. Changes in the law, such as allowing overseas Vietnamese to transfer residential land use rights, will expand opportunities to attract foreign capital into the market.
