Many real estate businesses have set quite high business targets for 2024, with some businesses even striving to grow several times more than last year.
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The hardest part is over.
Novaland has experienced a decline in business results since its listing in 2023. This is also the year that the Company has had to work hard to arrange capital and restructure debts. Up to this point, according to Novaland, the Company has completed restructuring its loans and bond debts.
In 2024, the company aims for consolidated net revenue of VND 32,587 billion and after-tax profit of VND 1,079 billion, respectively 6.9 times higher in revenue and 2.2 times higher in profit compared to the low base level in 2023. If this target is achieved, this will be a record revenue for Novaland.
To achieve billion-dollar revenue, Novaland plans to hand over products from 14 projects. Half of them are in Ho Chi Minh City, the rest are products from three key projects in Dong Nai, Binh Thuan, and Ba Ria - Vung Tau.
However, this ambitious plan depends largely on the legal developments related to the projects that the Company is implementing. Mr. Ng Teck Yow, General Director of Novaland, shared that the legal clearance of the projects is slower than expected, causing Novaland to not fulfill its commitments to customers. This is a huge loss, affecting the brand of the business.
“By all means, the Company must try to overcome, focus on resolving legal issues, and complete products and projects to hand over to customers,” affirmed the CEO of Novaland.
For Phat Dat, by successfully repurchasing 2 lots of bonds with a total face value of VND 800 billion at the end of 2023, Phat Dat officially paid off all bonds on time and ahead of schedule with a value of VND 2,500 billion, bringing the outstanding bond debt to 0, completely ending this debt.
This year, Phat Dat's goal is to bring in VND 2,892 billion in revenue and VND 880 billion in profit after tax, up 368% and 35.8% respectively compared to 2023. According to the plan, this real estate company will launch 4 key projects: Thuan An 1 and 2 in Binh Duong, Poulo Condor in Con Dao, Cadia Quy Nhon and Bac Ha Thanh in Binh Dinh.
Mr. Bui Quang Anh Vu, General Director of Phat Dat, said that one of the important bases for Phat Dat to set a high revenue target is because the Company owns a large number of beautiful projects, with complete legal documents, diverse products, designs suitable to tastes, creating high value for the common development of localities.
Expected impact of new law
Along with the market's recovery signals in the first months of 2024, a series of real estate giants have also quickly launched many plans. In particular, the record must be mentioned Vinhomes with a revenue target of increasing by more than 15% compared to last year, to VND 120,000 billion (equivalent to USD 4.77 billion); after-tax profit increased by about 4.3%, to VND 35,000 billion.
Similarly, Nha Khang Dien also set a business target for 2024 with revenue of VND 3,900 billion and after-tax profit of VND 790 billion, up 87% and 10% respectively compared to the results achieved last year. Meanwhile, Nam Long set a target of bringing in VND 6,657 billion in revenue and VND 506 billion in profit, up 111% and 5% respectively compared to 2023. This enterprise also plans to continue to allocate VND 192 billion to pay dividends, if the profit is higher, it can allocate a maximum of VND 384 billion to pay dividends.
Real estate developers are confident, so brokerage businesses are also quite optimistic when building business plans. For example, CenLand plans to have net revenue of VND3,250 billion and pre-tax profit of VND220 billion, respectively 3.4 times and 44.8 times higher than the results achieved in 2023.
CenLand's Board of Directors assessed that the changes in the Housing Law 2023, the Real Estate Business Law 2023, and the Land Law 2024 are a major step forward in policy, an important legal framework, and have a positive impact on the market, investors, and customers. The real estate market is expected to be more balanced in 2024 when legal and capital issues are resolved.
However, CenLand's Board of Directors warned that although the market is expected to have positive changes in 2024, risks still exist, related to the large corporate bond payment flow.
Mr. Le Bao Long, Strategy Director of Batdongsan.com, said that legal changes in the past have created big fluctuations in the real estate market. “We expect that with the breakthrough changes in policy, the market will continue to have a positive effect in this cycle, similar to what happened in the past.”
In the period of 2023 - 2025, new laws will be implemented, forecast to create 4 major impacts, including: healthy market growth, investor screening, guaranteed consumer rights, and tighter management system.
“Customers will benefit from the changes in the law. The two groups that will benefit the most are Vietnamese people living abroad and those who are resettled or compensated,” said Mr. Long.
According to statistics, about 15 - 20% of remittances are invested directly in real estate. Changes in laws such as allowing overseas Vietnamese to transfer land use rights will expand opportunities to attract foreign capital into the market.
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