HCM CITY (VNS) — More than 40 of the 62 property businesses listed on the stock market, or 75 per cent of the total, reported profits in the first quarter of the year.
Of these, 21 per cent of enterprises had profits of several hundreds of millions of Vietnamese dong, 50 per cent had profit of VND1 to 20 billion (US$47,600-$952,000) and 4 per cent earned profits between VND20 billion and VND1 trillion ($47.6 million), said Le Hoang Chau, Chairman of the HCM City Real Estate Association.
The figures showed that the real estate market had become warmer due to the recovery of the macro-economy, Chau said.
The demand for housing had risen, especially the market segment which was popular with low and middle income groups.
Vingroup tops the list of property enterprises with high revenue of VND6.17 trillion ($293.8 million), which was six times higher than the same period last year.
Its after-tax profit rose four times to VND1.06 trillion ($50.4 million).
Duong Thi Mai Hoa, Vingroup's general director said in a report sent to the HCM City Stock Exchange(HOSE) that the positive business results were mainly due to the turnover of apartment transactions in two projects – Royal City and Times City.
Hoa said most of its core businesses have contributed to the high growth. Of these, revenue from property transactions reached VND4.8 trillion (228.5 million), posting revenue 11 times higher than the corresponding period last year.
Hoang Anh Gia Lai Group posted after-tax revenue of VND398 billion ($18.9 million), posting a 33 per growth rate. Its total turnover in January-March period rose 28 per cent to VND925 billion ($44 million).
Several real estate firms such as FLC Group and FIT Investment Company also reported profits in the first quarter, which was equal to the whole of last year.
According to FLC Group's consolidated financial report, its turnover in the period reached VND360 billion($17.1 million), increasing 69 per cent in comparison with the same period last year. After-tax profit rose 32 times to VND39.4 billion ($1.8 million).
Doan Van Phuong, the group's General Director, said its expansion and search for new customers have resulted in the increasing turnover. In addition, businesses at its subsidiaries and associated units have brought good results to the group.
However, Chau noted that there were some other property firms who had registered profits from their associated companies or subsidiaries in other sectors.
He added that the figures in financial reports have not given the accurate picture of property firms. This year companies could continue to face difficulties.
However, he said that the property market could see improvements in the future as the National Assembly would be approving the law on housing, real estate trading and construction, which was expected to make changes in the market. Of these, the segment of small and medium sized apartments would draw the interest of home buyers. — VNS