Large housing supply to come from Vinhomes in 2025: exec

Leading housing developer Vinhomes will supply the Vietnamese market with "a large volume of goods" in 2025, especially in Hanoi, Hai Phong, Long An and Ho Chi Minh City's Can Gio district, says its director of investment Pham Anh Khoi.

In the northern region, Vinhomes Joint Stock Company (HoSE:VHM) will open for sale projects in Hanoi and Hai Phong city, while in the southern region, it will focus on the suburbs of HCMC such as Long An province and HCMC's Can Gio district, Khoi told a forum in Hanoi on Monday.

These are all areas with big housing demand, but supply, especially near HCMC, is limited, he added.

Vinhomes is a rare listed real estate developer supplying products in 2024. The Vinhomes Royal Island project in Vu Yen island, Hai Phong city, which was first put on sale in Q1, has recorded good sales, according to Khoi

In Q3, the company launched two new subdivisions at this major project, Hoang Gia and Dao Vua, and handed more than 500 service-commercial shops and shophouses in the Tai Loc subdivision.

In Hanoi, the Vinhomes Global Gate project has received very positive attention from the market thanks to its strategic location at gateways to the northeast of the capital city and many amenities, Khoi said.

In the southern region, The Opus One apartment subdivision (Vinhomes Grand Park in Thu Duc city), co-developed by Vinhomes and Japanese partner Samty, was launched on August 28, increasing the supply of apartments for the southern market.

Vinhomes' sales hit VND89,586 billion ($3.52 billion) in the first nine months of the year, while unrecorded sales reached VND123,038 billion ($4.84 billion).

The company said this will be a solid foundation for its growth in the coming time, especially in the context that the real estate market is expected to continue recovering.

In the first nine months of the year, Vinhomes recorded revenue of VND69,909 billion ($2.75 billion) and profit after tax of VND20,600 billion ($809.9 million), down 26% and 36% respectively compared to the same period last year.

This result came from the handover of Vinhomes Ocean Park 2 and Vinhomes Ocean Park 3 in Hung Yen province and recorded business results at Vinhomes Royal Island project in Vy Yen island in Hai Phong.

Khoi said 2023 was the most difficult year for the Vietnamese real estate market in terms of both supply and demand, especially demand in the context of rising interest rates.

The current lending interest rate is about 6%, but in 2023 the figure rose to 12-13%, even 16% at some banks.

"2024 is the year when the market recovers but not evenly. The real estate market in the northern region, especially in the suburbs of Hanoi and the provinces of Hai Phong, Vinh Phuc, Bac Giang and Bac Ninh, increased well. On the contrary, it has not really recovered in HCMC and the surrounding areas," he said.

Therefore, the executive noted he expects 2025 will be a year of more even recovery, spreading to the southern region.

He said an advantage for real estate businesses is that the construction cost in 2024 is much lower than in 2022 and 2023.

"In 2025, the construction cost per square meter of Vinhomes’ products is expected to be much lower than the peak of 2023 and lower than 2024. This is a very good point for real estate developers and it will be reflected in 2025," he added.

VHM shares closed Tuesday at VND41,300 ($1.62) apiece.