Property giants post $11B in unsold inventory

By Anh Tu   August 10, 2023 | 08:21 pm PT
Vietnam’s 10 biggest residential property developers posted a combined $11.4 billion in unsold inventory by the end of the second quarter, more than half of them by struggling company Novaland.

The data, compiled by VnExpress, showed that unsold inventory value only marginally declined compared to the end of last year.

Novaland alone recorded VND139 trillion in inventory, among them nearly 92% were in projects under construction.

Its major projects NovaWorld Phan Thiet, NovaWorld Ho Tram and Aqua City are still in the process of seeking licenses.

Novaland has been going through several major leadership changes in recent months. In the first half of this year it posted a loss of VND611 billion, and the company targets to be in the black in the second half.

Vinhomes ranked second in unsold inventory at VND55 trillion by the end of June, among them 96% were in projects under construction such as Dream City, Grand Park, Ocean Park and Smart City.

The unsold figure has dropped by around 16% since the beginning of the year as it has sold 5,400 residential units at Vinhomes Ocean Park 2 in Hanoi’s neighboring province Hung Yen.

In the third place Nam Long had an unsold inventory of VND16.2 trillion by the end of June, which has increased by more than 9% since the end of last year.

Dat Xanh Group’s figure was VND14.8 trillion, with more than three-quarters of it recorded from projects under construction.

A recent report by the Ministry of Construction showed that in 17 major localities, unsold property was at 16,688 units by the end of June.

The figures comprise 7,500 land lots, 7,477 houses, and 1,714 apartments.

Many projects are facing issues in licenses acquisition, land clearance and credit access.

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