The recently published annual report of 2023 by Hoang Quan Real Estate Services Trading Consulting Joint Stock Company (Stock code: HQC) assesses that the real estate market in 2024 will continue to face challenges due to the imbalance between supply and demand in real estate segments, as well as the crisis of confidence and legal bottlenecks.
However, there are still many opportunities stemming from the real demand for affordable housing and social housing. At the same time, the attention from the government through the issuance and adjustment of legal documents, such as the Law on Real Estate Business, the Law on Housing, and the Land Law, with many new regulations, is expected to remove difficulties for the real estate market.
In the message to shareholders, Mr. Truong Anh Tuan, Chairman of the Board of Directors of Hoang Quan Real Estate, assessed that the project to invest in at least 1 million social houses, when implemented, is expected to help solve the problem of accessing capital for construction for investors and make it easier for low-income workers and industrial park workers to buy houses.
Mr. Tuan said the company has registered to implement 50,000 social housing apartment products from 2022 to 2030 in line with the government’s goal.
Specifically, in November 2023, Hoang Quan Real Estate sent an official dispatch to the Ho Chi Minh City People’s Committee requesting access to social housing projects in the city, while registering to implement 50 social housing projects and 10 renovation and new construction projects for old apartments in Ho Chi Minh City.
“This will be an opportunity for Hoang Quan to promote its existing strengths and contribute to the government’s efforts to bring the dream of home ownership closer to workers and low-income people,” said the Chairman of Hoang Quan Group.
To date, the company has developed a chain of 24 social housing projects with more than 35,000 social housing products and housing for workers to settle down and build a career.
In addition to the main product line of social housing, Mr. Tuan said that Hoang Quan is also diversifying its investment and business in other real estate types such as commercial real estate, industrial park real estate, spiritual real estate, agricultural real estate, etc. to meet the diverse needs of customers and the real estate market.
In 2024, the company aims for revenue of VND 2,000 billion and after-tax profit of VND 100 billion, a significant increase compared to last year’s results (VND 322 billion and VND 5 billion, respectively).
To achieve the set plan, Hoang Quan said that it will continue to promote the investment promotion of social housing projects and the renovation of old apartments. In 2024, Hoang Quan Company has and is promoting the development of social housing and old apartments in Ho Chi Minh City and throughout the country.
The company aims to complete at least 50 social housing projects with about 50,000 products and renovate and build at least 10 old apartment buildings in Ho Chi Minh City, Dong Nai, and Long An. The Board of Directors clearly states that accessing the credit package of VND 120,000 billion will play a very important role in supplementing capital for project construction and implementation.
In addition, to ensure capital sources and increase profits, the company will invest in diversifying products to meet the maximum demand of the market and customers. In 2024, Hoang Quan aims to develop and manage industrial parks, as well as find new projects.
Specifically, Ham Kiem 1 Industrial Park (Binh Thuan) and Binh Minh Industrial Park (Vinh Long) will continue to optimize existing infrastructure, ensure completion of infrastructure in industrial parks such as traffic roads, water and electricity systems, and upgrade to attract more businesses.
In addition, the company also aims to continue promoting cooperation and M&A in accordance with the set direction, in line with the development strategy of the Group. Cooperative units and M&A projects are carefully selected with important criteria such as development potential, project efficiency, etc. Hoang Quan said that it will focus on finding clean land with good quality, real value, and potential for project development.
In 2023, Hoang Quan Group recorded revenue of nearly VND 293 billion, an increase of more than 6% compared to the previous year, and after-tax profit of only VND 5 billion, a decrease of 73% compared to 2022. The company also only achieved 4% of the after-tax profit target set by the Annual General Meeting of Shareholders.
