Many real estate project investors focus on meeting the product lines sought by the majority of customers in small provinces.
Walking “against the wind”
Laws related to real estate are passed, transportation infrastructure projects continue to be improved, major projects are about to enter the market along with buyer confidence gradually returning, which are optimistic signs for the market. real estate market in key markets such as Hanoi, Ho Chi Minh City and neighboring markets this year.
The Palm Manor Viet Tri Urban Area project (Phu Tho) has just officially opened for sale in the first phase, after more than 10 years of problems with site clearance. This event attracted hundreds of customers to participate. With a total investment capital of 6,500 billion VND, total area of 56.4 hectares, the project is implementing phase I with a scale of 28.4 hectares, investment capital of about 4,000 billion VND, including items: landscape infrastructure , green park, lake, square and 676 low-rise houses.
In this opening sale, Palm Manor brings to the market 66 villas, townhouses, and shophouses with prices ranging from 4.8 to 20.5 billion VND (including rough construction and exterior finishing). The investor’s representative said that after 2 days of opening for sale, most of the products had their owners identified. Some people even buy multiple houses at once, both for living and for investment. The project is expected to be completed and handed over to customers by the end of this year.
According to Mr. Nguyen Quoc Hiep, Chairman of Global Real Estate Investment Joint Stock Company (GP.Invest), Palm Manor becomes the first complete urban area in Phu Tho province, synchronous in terms of housing and landscape infrastructure. landscape, with planning of utility systems, public service works, green landscape… accounting for 70% of the total project area.
Also targeting the provincial market, with an affordable price segment for young people, Phu Dong Group has just “stirred up” the market when launching the Phu Dong SkyOne Project in Binh Duong province. In the context of home buyers getting younger and selling prices increasing, the appearance of Phu Dong SkyOne, with its strategy of high-quality, affordable apartments, has brought young families the optimal solution, simplifying the dream of settling down. The project has a construction scale of 30 floors, total investment of 1,100 billion VND, providing the market with 780 apartments with areas from 42 m2 to 72 m2.
Notably, the expected selling price is only from 1.4 to 2.2 billion VND/unit. According to assessments, compared to the general level, this is the best unit price today. That is a step “against the wind”, creating an outstanding difference for Phu Dong SkyOne when meeting a scarce market product line – also a segment sought by a large number of customers.
Not only does it have a prime location and self-contained amenities, this project also has completeness and legal transparency. The project was granted a construction license by the Department of Construction of Binh Duong province in November 2023, is constructing the pile foundation and is expected to hand over the house to customers in the second quarter of 2026.
Attracting more customers and being more successful than initial expectations of the above projects partly shows that the most difficult period for real estate is over, the market can recover by mid-2024. Notably Note, when entering the recovery phase, real estate prices will increase more.
Putting effort into a new “gold mine”.
Expectations in the provincial market are completely well-founded, because in 2023, many companies will record soaring revenue thanks to projects in the provinces, instead of investing in Hanoi or Ho Chi Minh City. They consider them new “gold mines” that need to be exploited in the near future.
First is Tu Liem Urban Development Joint Stock Company (Lideco). In the fourth quarter of 2023, this business recorded revenue of nearly 747 billion VND, an increase of 10 times compared to the same period last year and accounting for 82% of revenue for the whole year 2023. Gross profit reached 488 billion VND, profit margin Gross profit increased sharply from 13.3% to 65.3%. As a result, Lideco reported profit after tax of 363 billion VND, 279 times higher than the fourth quarter of 2022.
The company said that profits in the fourth quarter of 2023 soared compared to the same quarter thanks to the Bai Muoi Urban Area Project (Cao Thang Ward, Ha Khanh, Ha Lam, Ha Long City) being eligible to launch products. market.
Another real estate company that also won big thanks to projects in small provinces is Mekong Group (VC3). In 2023, this enterprise records revenue of 806 billion VND, an increase of 57% compared to 2022. Deducting costs, the business’s after-tax profit is 142 billion VND, nearly 2 times higher than the previous year. The company recorded a sharp increase in profits last year mainly thanks to the Bao Ninh 2 Urban Area Project (La Celia City), on the Bao Ninh peninsula (Dong Hoi City, Quang Binh province). The project has a total investment capital of more than 5,500 billion VND.
Instead of just dividing plots for sale, La Celia City was built by the investor to complete the exterior, with full landscape amenities, such as water music square, landscape lake, green park… In addition, according to To find out, this project has also been issued full documents to the buyer. The project will begin to be handed over to customers from the end of 2022. Thanks to that, Mekong Group’s profits will reach a new peak in 2023.
In addition, we can mention CNT Group. In 2023, thanks to increased financial revenue , the Company’s pre-tax profit is nearly 254 billion VND, an increase of 12% compared to the previous year. This is also a record profit for this company. Of which, a part of revenue is recorded for monies collected according to previous payment progress of customers purchasing real estate products at Ha Tien New Urban Area Project (Kien Giang).
According to Ms. Do Thu Hang, Senior Director of Research and Consulting Department (Savills Hanoi), the amended laws are expected to create conditions for the real estate market to develop. From 2025 onwards, about 84,400 apartments from 101 projects will be opened for sale. Products in neighboring provinces and big cities will increasingly meet people’s housing needs.
