Who will lead the real estate market in 2017?
Vingroup, Novaland, FLC and SunGroup are expected to continue to lead the property market in 2017. They are all big players in the real estate market, but each of them follows its own way.
Vingroup jumps into all market segments
The firm reported a sharp increase of 80 percent in revenue from real estate transfers in 2016, at VND38 trillion.
Nam Ha Noi Urban Development, a subsidiary of Vingroup, in the fourth quarter of 2016, delivered high-end apartments at Park Hill project in Times City urban area and earned VND9 trillion.
Not only providing high-end apartments, luxury villas and expensive resorts, Vingroup has recently announced it will also provide apartments at reasonable costs when kicking off the VinCity project. The apartments of the projects would be priced from VND700 million only.
Novaland with focus on mid- and high-end apartments
Novaland is the second-largest real estate enterprise in the stock market in terms of capitalization value.
In the last two years, Novaland has wrapped up a series of M&A deals to take over the projects in the central business districts of HCMC. With the deals, the enterprise’s land fund at 40 projects has reached 9.8 million square meters.
Novaland is also moving ahead with a plan to implement 11 projects with total floor areas of 4.1 million square meters. According to Savills, the total value of the 11 projects is VND25.6 trillion.
Novaland catches the public’s special attention not only with its large land fund, but also with its own way of sales. Unlike other developers who rely on distributors, Novaland develops its own sales network.
The real estate developer reported revenue of VND7.4 trillion in 2016 and net profit of VND1.7 trillion, which was four times higher than in 2015.
FLC focuses on resorts and golf courses
Well known for its high-rise buildings and houses in Hanoi, including the twin tower at No 265 Cau Giay and FLC Complex at No 36 Pham Hung, FLC in recent years has focused on developing high-end resorts.
FLC developed high-end resorts can be found throughout Vietnam. An analyst estimates that the projects are capitalized at over VND70 trillion. These include FLC Sam Sơn Beach & Golf Resort, FLC Quy Nhon Beach & Golf Resort, FLC Vinh Thinh Resort and FLC Ha Long Resort.
Sungroup gathers strength on resorts and cable car projects
Sungroup does not list it shares on the bourse like the other three big firms, but it is still a well known name to Vietnamese.
Sungroup’s projects are mostly in thevhigh-end resort tourism sector, such as Premier Village Da nang Resort, Premier Village Phu Quoc Resort and Intercontinental Da Nang Sun Peninsula Resort.
M. Ha, VNN