At the beginning of the year, the big real estate companies are enthusiastically planning to expand their land funds. Illustrated image, source – Int
Market developments show that “healthy” real estate companies are actively taking actions to expand their land funds with the goal of implementing large-scale urban, resort, and industrial projects nationwide.
Recently, Ha Do Group Joint Stock Company proposed to invest in the Nam Phuoc 1 and Nam Phuoc 2 industrial clusters in Ninh Thuan province, near the Ca Na industrial zone. Each cluster has a scale of 50 hectares and focuses on industries that have little impact on the environment and have advanced technology.
In addition to expanding into the industrial real estate sector, Ha Do also plans to carry out many M&A deals this year, accumulate land funds to implement urban projects in various northern provinces such as Hung Yen, Thai Binh, Nam Dinh, Quang Ninh, and expand business activities into multiple industries.
Also in early January, Kim Oanh Group successfully acquired the Một Thế Giới investment and construction project (also known as Hoa Lân project) in Thuận An City, Binh Duong Province. The project has a scale of nearly 50 hectares, with a total investment capital of about 15,000 billion VND, and is expected to be planned as a residential and commercial, educational, and entertainment complex.
According to the media, a representative of Kim Oanh Group said that this is a key golden land of the company in the upcoming period and will call for foreign investors to cooperate in implementation.
Novaland Group is currently in the process of restructuring its debts but continues to develop new land funds. The company has recently proposed to invest in a tourist-resort complex covering nearly 437 hectares in the Mui Yen area (Binh Thuan province). In addition, the company is actively working with Lam Dong province to implement a complex tourist-resort urban project combined with entertainment in the Lam Vien Plateau, which has been proposed since 2022.
Dat Xanh Group also informed that it is seeking land funds of 100-200 hectares across the country, with good legal status to implement projects in 2024-2025. The company is also planning to M&A existing project land funds concentrated in areas with a high degree of urbanization that can be quickly deployed to meet the demand for real estate products.
In addition, other big companies such as Ecopark, Hoang Huy, TNG Holdings, Vinhomes, Eurowindow… are also actively participating in the development of projects from large land funds ranging from 50-150 hectares in Lam Dong, Long An, Hai Phong, Binh Thuan, etc.
In addition, another real estate giant that successfully restructured its debts last year, Phat Dat Group, also has a strategy to expand its land fund and develop model urban projects in many provinces and cities such as Binh Dinh, Quang Ngai, Phu Yen, Lam Dong, Khanh Hoa, and Dong Nai.
In addition, Phat Dat also stated that it is aiming to acquire land funds in potential tourism areas such as Phu Quoc, Binh Dinh, and Ba Ria – Vung Tau to invest in resort real estate models.
The race to develop land funds as hot projects of real estate businesses even spreads to “non-industry” companies when recently, TH Group Joint Stock Company proposed to invest in the National Dan Kia – Suoi Vang Tourism Zone project in Lam Dong province.
According to the plan, the project covers a total area of nearly 4,000 hectares, including an area in Lac Duong town, Lac Duong district, and an area in Ward 7, Da Lat City. The project has a total investment level of up to 30,313 billion VND and will be implemented through a bidding method to select investors.
Regarding the above trend, Trang Bui, CEO of Cushman & Wakefield, assessed that in the race to expand land funds in 2023, foreign capital has the advantage.
However, according to Trang Bui, the market in 2024 will see a stronger comeback of local businesses after 2 years of restructuring. The trend of this year will be that local businesses with strong financial resources will continue to race to acquire clean land funds, while foreign capital will intensify the hunt for projects with financial difficulties.
“The investment appetite of businesses at this time is projects with clean land, good quality, real value, legal ownership rights, complete compensation, and development potential,” Trang Bui commented.
In terms of concerns related to speculation in land through acquisition activities, M&A, project application, etc., according to experts, new laws such as the 2024 Land Law; the Housing Law and the new Real Estate Business Law have almost had strong sanctions if businesses only speculate in land accumulation but do not develop.
Therefore, experts assess that with the new, more stringent legal corridor, the situation of parties acquiring land and leaving it idle, or taking advantage of project planning information to inflate land prices, create virtual hype, and negatively impact the market will be limited.
Meanwhile, from the perspective of businesses, Huong Nguyen, CEO of Dai Phuc Land, evaluated that in the current difficult situation, only large businesses with sustainable cash flow dare to boldly expand their land funds. The main priority of businesses in 2024 is to maintain stability and complete debt restructuring.
