HA NOI — Nearly one-third of the assets of listed real estate companies on the stock exchanges in Ha Noi (HNX) and HCM City consist of unsold real estate worth VND55 trillion (US$2.6 billion) in the first half of this year alone.
|Apartments in HCM City. Nearly a third of the assets of listed real estate companies on the nation's two stock exchanges are real property worth an estimated VND55 trillion (US$2.6 billion) at the end of the first half of this year. — VNA/VNS Photo Tran The Lam
Statistics show that the inventory assets of Viet Nam Housing Joint Stock Company (NVN) accounted for 90 per cent of its total assets or VND636 billion ($30.2 million), of which VND635 billion ($30 million) was money for buildings in progress.
NVN has implemented six projects this year. Its net turnover in the six-month period was VND37 billion, a 19 per cent decline over the same period last year. Its net profit for the period fell by 61 per cent.
Phat Dat Real Estate Investment and Development Corporation in HCM City, Hong Phat Construction Investment Joint Stock Company and Viet Nam Infrastructure Company also have a high inventory rate of 89 per cent.
More than 60 listed property companies on the exchanges confirmed that they had too much unsold real estate. Housing accounts for 46 per cent of the total assets of these enterprises.
Sixty nine per cent of all cash was in the hands of the six biggest companies. Revenues in the period were insufficient to cover interest, payments for contractors and other expenses.
Figures revealed that 11 out of 63 listed companies in the property sector reported total losses of VND179 billion ($$8.5 million) in the first six months of the year.
Kinh Bac City Development Corporation (KBC) reported the biggest loss of VND105 billion while its inventories was VND5.9 trillion, accounting for 52 per cent of its total assets.
Petrolimex Infrastructure Investment and Development Company (PTL) also reported loss of VND20 billion.
In order to reduce the inventories, the Ministry of Construction has asked constructions departments to report about the inventories at real estate companies to submit to the National Assembly at the fourth session.
The figures would be collected to the ministry before the September 15 aiming to review socio-economic development plan this year.
The property has been in stagnancy since April when the State Bank of Viet Nam tightened credits. Real estate firms and building material producers faced difficulties and even bankruptcy. The ministry has proposed solutions to untie the market several times.
Statistics from the Ha Noi Construction Department showed that 122 property trade floors out of 500 ones stopped their operation while 200 ones had not had successful transactions.
It also said that some property businesses have had inventories of 500 apartments with loans of VND1 trillion. Investors had to sell out their apartments to reduce financial pressure. — VNS