Vietnam real estate majors embrace new product sales for 2024

In the fourth quarter of 2023, Vietnamese property developers are trying to catch up with their annual targets, and are mapping out plans to launch new projects after a difficult year.

Recovery plans for 2024

Although it is only October, Ngo Quang Phuc, CEO of Phu Dong Group, is busy with his firm's 2024 plan.

He said that the first quarter of 2024 will be a busy one for all employees of the group when it hands over houses at the Phu Dong Sky Garden project to customers. Construction of the high-end 640-apartment project in Di An town, the southern industrial hub of Binh Duong started in 2021 and is close to completion.

The company will also launch another apartment project called Phu Dong SkyOne. The project covers more than 5,600 square meters, also in Di An town.

With two luxury apartment blocks, including 780 apartments from one to two bedrooms and selling prices from VND1.1 billion ($44,920) per unit, the project is designed for young people and low-income workers in Binh Duong province and neighboring Ho Chi Minh City, Phuc said.

Van Phuc Group is also rushing to complete its 2024 development plan with the launch of its first luxury apartment project at the Van Phuc City mega-project. This project covers 198 hectares on Highway 13, Thu Duc city, HCMC.

Nguyen Huong, CEO of Dai Phuc Real Estate JSC, a member of Van Phuc Group, said that in recent years, the company has mainly developed villas and townhouses. However, to diversify products as well as meet project planning and people's needs, in the first quarter of 2024, it will launch its first high-end apartment blocks with more than 200 apartments, out of the expected number of about 5,000.

“In addition, we will continue to launch the next villa and townhouse subdivisions of the Van Phuc City project. Currently, we have completed basic facilities such as a school, hospital, roads and entertainment areas to serve residents," Huong said.

According to CEO of Asian Holding Real Estate JSC Nguyen Van Hau, the firm has developed a plan for 2024 after a difficult 2023. It will develop three projects in Dong Nai province and Binh Phuoc province's Dong Xoai town, offering 800 products, including commercial housing, social housing and land plots.

Next year, the company plans to continue building its brand and develop large real estate projects of 10-30 hectares or more.

"In 2024, Asian Holding has set a revenue growth target of 120% and a profit expansion of 150% year-on-year, based on expectations for the recovery of the property market. It will have a staff of 200 and open more branches, depending on the market situation," he revealed.

Novaland Group informed that its plan for 2024 will focus on recruiting new sales staff and offering new products in the subdivisions of the Aqua City project in Bien Hoa town, Dong Nai province, and resort projects in Phan Thiet town of Binh Thuan province, Ba Ria-Vung Tau province, and HCMC.

Besides, it will hand over houses at projects in HCMC, Ba Ria-Vung Tau, Dong Nai, and Binh Thuan to customers.

Meanwhile, Hung Thinh Land expects 2024 to be a year of growth recovery with the offering of new apartment projects in HCMC and Quy Nhon town of Binh Dinh province in central Vietnam.

Enterprises such as Phu Long, Gamuda Land, Tran Anh Group, Cat Tuong Group, NAMGROUP, An Gia, Pi Group and Bcons also have plans to launch new projects, mostly targeting the affordable housing segment and provinces surrounding HCMC.

Fierce competition

Talking about the market in 2024, Vo Hong Thang, R&D deputy director of property consultancy DKRA Vietnam, said that the real estate market will recover at the end of 2023 and early 2024. However, it will be not a "V-shaped" recovery model as we expected, but feature solid upward steps, creating momentum for sustainable development in the future.

According to Thang, from now until the first half of 2024 can be considered the beginning of the next growth cycle of the real estate market. When government efforts to remove obstacles prove effective, the public investment disbursement rate will increase while loan and deposit interest rates are on a downward trend, so the market will see bright spots such as rising new supply focusing on affordable housing and social housing serving real needs.

"More diversity in prices and product segments will provide more choices for buyers while market demand will improve in most segments and regions, with a focus on large urban areas with convenient transport," he said.

According to Thang, in 2024, businesses will have certain shifts in product development as well as project development areas. Accordingly, they will focus on promoting the development of housing segments that meet real needs. As a result, highly speculative segments such as land plots will be limited and gradually eliminated.

Nguyen Van Dung, sales director of Tran Anh Group, assessed that since September, the market has shown signs of a recovery with the number of new products introduced to the market by developers on the rise. Some transactions have been recorded, a positive signal for 2024.

However, Dung said that the new product sales race will create fierce competition among businesses. Besides, when the market recovers, enterprises will consider selling products being shaped to boost growth, thus having fresh consequences on the market.

"The core points of the market are the product line, price, and customer support policies, but I have not seen them in the sales plans of many developers. This will be a minus point for businesses in 2024," he added.