The summary report of the Ministry of Construction said that in the first half of 2023, the real estate market continued to be in a state of quiet transactions, but by the last 6 months of the year, the number of searches for investment financial transactions had recovered well and the supply from new projects appeared more and more.
Regarding real estate inventory, according to data from 53/63 localities, the real estate inventory is about 18,808 units, mainly individual houses and land plots of projects. The specific inventory is 3,196 apartments; 6,554 individual houses; and 7,190 land plots.
The Ministry of Construction assessed that, in general, in 2023, real estate inventory in projects for apartment housing, individual housing and land segments tends to decrease.
Although according to the general report, inventory is on a downward trend, but looking at the individual picture of each real estate business, it is easy to see that inventory is at a quite high level.
Leading the real estate enterprises in terms of inventory, at the end of 2023, No Va Real Estate Investment Group Corporation (Novaland, HoSE: NVL) had up to VND 138,598 billion in inventory, an increase of 3% compared to the beginning of the period, nearly equal to the total inventory of the two leading real estate enterprises, Vingroup Corporation - JSC (HoSE: VIC) and Vinhomes JSC (HoSE: VHM) combined.
In addition, inventory accounts for 57% of the total assets of the enterprise with the value of land fund and projects under construction accounting for VND 129,458 billion (more than 93% of total inventory). In addition, there are a number of completed projects and real estate goods, completed real estate waiting to be handed over to customers accounting for a very small proportion.
With such a huge amount of inventory, Novaland is having to set aside a provision of up to nearly 161 billion VND, 80 times higher than at the beginning of 2023.
Notably, the group's inventory has always accounted for over 50% of total assets for many years now, and tens of thousands of billions of this amount are used as collateral for loans.
A series of real estate businesses "shoulder" huge inventory values.
Right behind Novaland is the "big guy" in the real estate industry - Vingroup with inventory as of December 31, 2023 reaching VND 92,730 billion, down nearly VND 6,000 billion compared to the beginning of the period.
Of which, Vingroup's inventory structure includes VND63,354 billion of real estate under construction and real estate ready for sale.
At Vinhomes , inventory stopped at VND 52,342 billion, down 18% (nearly VND 10,000 billion) compared to the beginning of the period. The reason is that in 2023, Vinhomes handed over 9,800 low-rise real estate units on schedule at the two projects Vinhomes Ocean Park 2 and 3, helping to bring in revenue and at the same time reduce inventory.
Vinhomes's inventory is mainly in the real estate for sale under construction category with more than VND 49,407 billion, which the enterprise explained mainly includes land use fees, site clearance costs, purchase prices of subsidiaries allocated as part of project purchase costs, construction and development costs of Dream City ecological urban area project, Dai An urban area, Grand Park, Vinhomes Ocean Park, Vinhomes Smart City and some other projects.
Although it does not have as high an inventory as the above-mentioned businesses, Khang Dien House Investment and Trading JSC (HoSE: KDH) leads in inventory growth rate.
At the end of 2023, Nha Khang Dien recorded the highest inventory in the company's history at VND 18,787 billion, an increase of 50.8% compared to the beginning of the year.
The inventory structure of the above real estate enterprise is mostly unfinished real estate in developing residential projects including 8 projects, accounting for a total inventory of nearly 17,700 billion VND.
Of which, Khang Phuc - Tan Tao Residential Area project accounts for more than 6,527 billion VND; Doan Nguyen - Binh Trung Dong project accounts for more than 3,380 billion VND; Binh Trung - Binh Trung Dong project accounts for more than 3,158 billion VND; this is also the project with the strongest increase in inventory, 3 times higher than the beginning of the period and is also the reason why the enterprise's inventory item increased rapidly.
At the same time, the Khang Phuc - An Duong Vuong project also doubled to more than 1,233 billion VND; the Khang Phuc - Phong Phu 2 Residential Area project is worth more than 1,675 billion VND; the Khang Phuc - Binh Hung 11A Residential Area project is nearly 610 billion VND. In addition, the list also has a new project appearing in 2023, Binh Trung Moi - Binh Trung Dong, with nearly 965 billion VND.
In contrast to the rapid growth of Nha Khang Dien, the inventory of Dat Xanh Group Corporation (HoSE: DXG) recorded a slight decrease of VND 109 billion compared to the beginning of the year to VND 14,139 billion. Of which, the company's finished real estate inventory increased by nearly 58%, to more than VND 2,500 billion and unfinished real estate decreased to VND 10,892 billion.
Also operating in the real estate brokerage sector, inventory of Phat Dat Real Estate Development Corporation (HoSE: PDR) recorded a slight decrease to VND12,199 billion, but still accounted for more than half of assets and was mainly distributed in 12 key projects of the enterprise.
Some typical projects include: The EverRich 2 Project with 3,597 billion VND; Tropicana Ben Thanh Long Hai Project with 1,993 billion VND; Binh Duong Tower Project with 2,393 billion VND...
According to the special report "The current health status of Vietnam's real estate market" by the Vietnam Association of Realtors (VARS), the large amount of inventory, mainly comes from unfinished construction projects, forced to suspend because businesses no longer have enough resources to continue implementing the project.
Looking at the inventory figures of tens to hundreds of thousands of billions, it shows that inventory is gradually becoming a difficult problem that every real estate business needs to find a solution to .
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