Real estate tycoon returns to land acquisition race

Passing the bottom of the real estate market, many businesses announced plans to receive project transfers, land use rights... to increase land funds.

Laying the foundation for a new cycle

Although the market is facing many immediate difficulties, after restructuring all finances from short-term to long-term and preparing resources for when the market recovers, Dat Xanh Group plans to search for and purchase projects in 2024.

Specifically, Dat Xanh will promote the purchase and accumulation of land funds of 100 - 200 hectares nationwide, with full legal documents... to develop projects in 2024 - 2025. The company also plans to complete the legal procedures of 8 large-scale key projects, preparing 20,000 products in densely populated areas such as Ho Chi Minh City and Binh Duong.

“Currently, the market demand for the mid-range housing segment is very large. Dat Xanh's upcoming projects will be eligible for sale in the period 2024 - 2025, in order to anticipate and meet the large demand of the market, creating breakthrough business results for the company,” said Mr. Luong Tri Thin, Chairman of Dat Xanh Group.

Mr. Pham Thu, Chairman of the Board of Directors of Saigon Real Estate Corporation (Saigonres Group), also said that the business strategy this year is to expand project mergers and acquisitions (M&A), search for clean land funds and increase capital to implement large projects.

According to Mr. Thu, the Company is applying for licenses for 26 projects from the parent company and member companies, stretching from Mong Cai (Quang Ninh) to Phu Quoc, with a clean land fund of more than 1 million square meters.

In addition to the two above-mentioned enterprises, since the beginning of 2024, many enterprises have announced plans to receive project transfers, land use rights... to increase land funds. In the 2023 annual report, Mr. Nguyen Van Dat, Chairman of the Board of Directors of Phat Dat Real Estate Company, said that this year, the Company will launch 4-6 large projects on the market, while actively promoting the expansion of land funds in Dong Nai, Lam Dong... and making efforts to find new land funds in Ho Chi Minh City.

Meanwhile, An Gia Real Estate Group also announced at the beginning of the year that it was looking for opportunities to conduct M&A and expand its clean land fund. This enterprise emphasized its viewpoint of not following the market, not buying land funds or projects at all costs. The company will have a thorough analysis of the land, so that when it is put on the market, the product price will be suitable for the majority of buyers.

With businesses continuously announcing plans to expand their land funds, the Vietnam Association of Realtors (VARS) calls this preparation for the start of a new cycle of the real estate market. According to VARS, the new cycle will take place closer to demand. In particular, all participants have practical calculations, close to demand and resources.

The race is getting more and more diverse

In a recent report, Dat Xanh Services Institute of Finance and Real Estate Research assessed that the race to hunt for land funds in the market is increasingly diverse. For example, in terms of location, Vinhomes invests in urban areas in Long An, Can Gio, Cam Lam...; PV Invest "advances South" with a project on Dai Phuoc Island (Dong Nai); while many southern investors such as CapitaLand, Keppel Land, Phu My Hung... are pushing "advances North"...

Regarding real estate, Vingroup and Ha Do are researching and developing industrial park real estate in Vung Ang (Ha Tinh), Ninh Thuan...; Novaland and Ecopark continue to develop resort real estate in Binh Thuan, Phu Tho...

In terms of scale, Vinhomes invested in an urban area of over 1,000 hectares in Long An; Phat Dat, An Gia, Dat Xanh, Hoang Huy, Ecopark, Eurowindow, TNG Holdings... are actively "hunting" for large land funds of 50-150 hectares in many localities...

As for investors, the market has seen the emergence of many new “players” such as Central Pattana Group (Thailand) entering the retail market in Vietnam; TH Group has just proposed Lam Dong province to invest in the Dankia - Suoi Vang National Tourism Area Project; Minh Phu Seafood Group also surprised everyone when it announced its entry into real estate with a social housing project in Ca Mau...

Ms. Trang Bui, General Director of Cushman & Wakefield Vietnam, assessed that the recent period was a period of purification, transfer, modification and preparation for the next steps of the market, especially the housing market. The new regulations will facilitate businesses to expand the market as well as cooperate.

Therefore, although there are still many challenges, Ms. Trang Bui believes that this is the right time for businesses to increase acquisition and cooperation activities, especially with businesses with strong financial potential.

According to Cushman & Wakefield's forecast, a large amount of foreign capital will flow into the Vietnamese real estate market in the period of 2024 - 2026. Many transactions have been and are in the negotiation process and have quite positive signals.

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