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Many real estate businesses recorded good results in the first months of 2021.

Many real estate giants record good results

According to the release of consolidated financial statements for the first quarter of 2021, Vingroup’s net revenue and profit after tax both increased sharply compared to the same period last year, increasing by 52% and 72%, respectively.

In which, real estate sales in the quarter reached VND10,656 billion, an increase of 55% compared to the same period last year thanks to the handover growth in three major Vinhomes projects; revenue from leasing real estate investment and related services in the first quarter in 2021 reached VND1,885 billion, up by 5% compared to the same period last year.

Dat Xanh Group Joint Stock Company has released its financial statements in 2020 with a record loss of nearly VND500 billion, which surprised investors. However, in the first quarter of 2021, Dat Xanh Group Joint Stock Company had an "upstream" result when net revenue reached nearly VND2,954 billion, 5 times higher than the same period last year.

In the revenue structure of Dat Xanh Group Joint Stock Company, revenue from the sale of apartments and land plots accounts for more than 73% of the remaining revenue from real estate brokerage. After deducting expenses, the company's after-tax profit reached VND712 billion, seven times higher compared to the same period last year.

Explaining to the Stock Exchange and investors, the leader of Dat Xanh Group Joint Stock Company said that the above result was due to the company recognizing the revenue and profit from the project successfully deployed from 2020 and the brokerage and service activities achieved good results.

Similarly, Nam Long Investment Joint Stock Company announced the profit in the first quarter 2021 was VND365 billion, 3.3 times higher than the same period last year. Most of this profit comes from investments in urban projects in Dong Nai.

Century Real Estate Joint Stock Company (Cenland) also recorded the highest revenue and profit after tax in history of VND2,041 billion and VND122.6 billion, up by 664% and 193% compared to the same period 2020, respectively.

Phat Dat Investment Joint Stock Company reported after-tax profit in the first quarter of 2021 with VND251 billion, an increase of nearly 60% compared to the same period of 2020. This profit mainly comes from the product handover of Nhon Hoi (Binh Dinh) project that this company is implementing. In the first quarter, the company accelerated the progress of infrastructure completion and delivered products to customers.

An Gia Real Estate Development and Investment JSC reported after-tax profit in the first quarter of 2021 increased by over 635% compared to the same period last year. Profits recorded from the handover of the Panorama project, District 7, Ho Chi Minh City and finance revenue increased.

Maintain prudent business strategy

According to experts, the above positive business results of enterprises are the result of a process, because businesses have planned to "pick sweet fruits" from the past.

At the recent shareholders' meeting, Novaland leaders explained that, although the Covid-19 pandemic has been complicated, many enterprises faced difficulties, including Novaland.

However, Novaland proactively changed strategy. Specifically, Novaland has boosted mergers and acquisitions to improve the ecosystem of projects, take advantage of many sales events, and introduce diverse products with prime locations in the provinces. The company has been preparing a land fund for the past three years. Thanks to that, Novaland's revenue and profit have grown strongly.

Mr. Nguyen Van Dinh, Deputy General Secretary of the Vietnam Real Estate Association, said that in 2021, when the investor capacity and corporate financial situation improves, the removal of legal problems will speed up projects, creating a richer supply for the market, so the business results of real estate will also be better.

In general, the economic situation is forecasted to be difficult in the long run.

Certain risks make it difficult for investors because they are unable to record revenue and profit in the first months of 2021 and may fall into the last three months of the year due to the Covid-19 pandemic, requiring businesses to have prudent business strategies.

According to Mr. Nguyen Ba Sang, Chairman of An Gia Board of Directors, with a prudent management strategy, in 2021, An Gia will continue to seek reputable partners and financial potential to cooperate in implementing new projects with criteria such as legal transparency, reasonable prices and prime location to serve the sustainable and long-term development plan in the future. Also, this year, An Gia's goal is to spend VND3,000-5,000 billion to buy more land funds to serve the development of real estate projects in the next three years.

"We remain focused on the mid-range real estate segment. This is the segment that we found that, even though the market fluctuates, the absorption rate is still very good. An Gia's point of view is not to follow the market, to buy land and projects at any cost. But we will have a careful analysis of the land and price to make the most affordable products for buyers," Mr. Nguyen Ba Sang said.