In the second quarter (Q2) of this year, Phat Dat Real Estate Development JSC (PDR) posted only $345,800 in net revenue from sales and service supplies, but thanks to increased financial income, the company's post-tax profit during the period amounted to $2.04 million. However, this was still an 81 per cent dip compared to one year ago.

Despite some rebounds, the realty market is still far from 2019 levels

Similarly, Century Land Real Estate JSC (CRE) saw a 20 per cent drop in its net revenue on-year, falling to around $13.9 million, and its post-tax profit shed 9 per cent on-year to $358,300.

“There have been some positive signs, but nothing particularly robust. Our real estate investment sank compared to one year ago as several projects are yet to launch, leading to falling revenue and profit,” said a company representative.

The two above firms are examples of the market's less positive business picture. Many other real estate firms have also reported a retreat in Q2, including Khai Hoan Land, Hai Phat Investment JSC, An Duong Thao Dien JSC, Viet Property JSC, LDG Investment JSC, to name but a few.

Vo Hong Thang, investment director of southern real estate service major DKRA Group, said less positive figures in Q2 was inevitable as the property market has been in the doldrums for quite some time.

“The realty market has faced stormy times since early 2022, with flat sales and plunging core business lines. The market started to show signs of a rebound late last year,” said Thang.

The apartment segment is expected to lead the market rebound, but has yet to see a spike in transactions.

Thang cited that in H1 of this year, the apartment segment in Ho Chi Minh City and its surroundings welcomed new supply of about 15,000 units, but only about 3,300 units were sold, up 8 per cent on-year but only equal to 15-20 per cent of pre-pandemic 2019.

Thang expects that companies' revenue growth will resume momentum in core business segments from 2025.

Senior expert Nguyen Tri Hieu, director of the Toan Cau Institute, said the gloomy business picture was no surprise, but there were bright spots on the market's general landscape.

“Registered foreign investment in Vietnam was estimated at $15.2 billion in H1, up 13.1 per cent on-year. Industrial real estate could benefit as foreign investors are more vigorously entering the Vietnamese market,” said Hieu.

Despite these headwinds, several firms have efficiently weathered the storm.

For example, southern industrial park developer Tin Nghia JSC counted $1.7 million in net revenue in Q2, up 7 per cent on-year, and post-tax profit of $2.8 million, equal to a five-fold increase.

The company has attributed the growth to increased services providing income at Tam Phuoc Industrial Park (IP) in Dong Nai province, where wood businesses have secured orders for stable operations.

Another IP developer, Sonadezi Long Thanh JSC, counted $5.2 million in net revenue in Q2, up 16.8 per cent on-year, and its net profit touched $1.4 million, showing a 54 per cent jump on-year.