Balance of difference
On the financial statements of real estate enterprises, the item of short-term prepayments from buyers/customers is considered as "savings". According to accounting principles, the money that enterprises receive from customers who buy real estate in projects but have not yet been handed over will be accounted for here. This amount will be recorded as revenue when the enterprise completes and hands over the completed real estate to customers.
Dan Tri 's statistics with a number of large residential real estate businesses in the market show that there is a significant difference in the "savings" of the units.
As of December 31, 2024, the short-term prepayments of Vinhomes Joint Stock Company (stock code: VHM) were VND 46,383 billion, an increase of 32% compared to the end of 2023. This figure is 1.7 times higher than the total recorded by the remaining 5 enterprises. Even at the end of 2022, customers prepaid Vinhomes up to VND 62,337 billion, 2.7 times higher than the total of other units combined.
The majority of this item is the balance of progress payments from customers who have signed real estate purchase contracts at projects of Vinhomes and its subsidiaries. Statistics from Vietcap Securities Joint Stock Company show that last year, Vinhomes and its subsidiaries were the units with the most project launches on the market.
Groundbreaking and opening events of residential real estate businesses in 2024 (Photo: Vietcap).
Ranked second in terms of short-term prepayment value is No Va Real Estate Investment Group Joint Stock Company (Novaland - stock code: NVL). This category decreased slightly by 1% compared to the same period in 2023. This partly reflects the removal of obstacles for this enterprise's major projects as well as the fact that transactions have not changed compared to 2023.
Last year, the "savings" of the Construction Development Investment Joint Stock Corporation (DIC Corp - stock code: DIG) improved significantly when it reached VND 2,426 billion, up 37%. In particular, the strongest growth came from the A2-1 apartment project, recording more than VND 843 billion, 4.9 times higher than the same period at the end of 2023.
On the other hand, Khang Dien House Investment and Trading Joint Stock Company (stock code: KDH), Nam Long Investment Joint Stock Company (stock code: NLG), Dat Xanh Group Joint Stock Company (stock code: DXG) all recorded a decrease in prepaid customers. The reason is that in 2023, these units all had significant growth.
For example, at the end of 2023, Khang Dien House recorded VND 2,388 billion in short-term prepayments from customers, 2.7 times higher than the previous year. In 2024, this enterprise did not open any projects for sale.
"Savings" turn into money
Although growth in short-term prepaid customer items is considered a positive signal, in order to record revenue, businesses must successfully complete and deliver products to customers.
The head of the analysis team of a securities company said that there are still cases where real estate businesses cannot hand over projects even though they have recorded customers' advance payments. Some cases that can be mentioned are problems with the project's legal status, insufficient capital to implement the project, and litigation disputes.
This can be seen through the financial data of Vinhomes and Novaland. The short-term prepaid customer items of these two units have grown rapidly and far exceeded other businesses. The reason is that these giants have all implemented large-scale mega-projects in recent years.
However, due to legal problems with the project, this recorded value of Novaland has not been realized into the company's profit. While Vinhomes' profit grew in the same direction as the prepaid customer item, Novaland's was the opposite. In fact, in 2024, this company even had a loss after tax of about 4,351 billion VND. Other businesses such as Nha Khang Dien, Nam Long, and Dat Xanh all recorded strong growth in profit in 2024.
In the 2025 investment strategy report, securities companies shared the view that the implementation of the revised Land Law will help legal procedures go more smoothly and facilitate many new projects to be opened for sale on the primary market from 2025 onwards.
Accordingly, large enterprises such as Vinhomes, Nha Khang Dien, Nam Long or Dat Xanh will have a good advantage before the upcoming legal reforms. Research units all forecast that sales activities nationwide will increase sharply in 2025 from new and ongoing projects.
Vinhomes is expected to launch several projects this year, including Phuoc Vinh Tay in Long An province, and Duong Kinh in Hai Phong city - along with current sales activities from projects such as Royal Island and Ocean Park 2 and Ocean Park 3. Khang Dien House is expected to launch a new project in Thu Duc city. After receiving a construction license in the third quarter of 2024, Dat Xanh also expects to launch Gems Riverside in Ho Chi Minh City in early 2025.
Several companies are expected to record double-digit sales growth this year. Sales growth is expected to lead to a sharp increase in profits from 2025 when projects are delivered.
Source: https://dantri.com.vn/bat-dong-san/thay-gi-tu-khoi-cua-de-danh-bat-thuong-cua-loat-dai-gia-dia-oc-20250205153123390.htm
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