He said that many strong real estate brands are facing challenges. The difficulties in this sector have been evident for the last 3 years.
For TTC Land, although it is an enterprise with 20 years of establishment and development, it is not out of the general difficulty cycle. The result of the company’s recent financial report shows that the real estate business picture is really difficult.
“Looking back at the whole market, it can be seen that the high-end real estate segment is facing oversupply. I think by 2025, the high-end segment may not thaw. Only the affordable housing product line will return in the late of this year and heat up the market. The housing segment for industrial workers and the real housing needs of households always exists,” emphasized Mr. Thanh.
Sharing to the shareholders, the Chairman of TTC said that before the real estate market went into crisis, the company had set out a cautious scenario for the group and its member companies. Concretely, do not expand projects, do not issue bonds…, it can be temporarily called “hibernation”. Only at this stage, when the market has some signals, the business will start to enter a new race.
The first stage for this start is the TTC Plaza Da Nang project. This will be the first project to bring in revenue in 2024 for the business after the difficulties of Covid-19 and the fluctuations of the real estate market. In the period of 2025-2030, the company will implement a series of projects in Phan Thiet, Phu Quoc, closing the industrial real estate, logistics, and housing in Ho Chi Minh City. and neighboring provinces.
“TTC Land’s asset is quite large but due to the difficult market context, it has been faltered. Recently, the company has made great strides in completing the legal work and granting certificates of land use rights, house ownership rights and assets attached to land for 431 existing residents from the projects of Carillon 3, Jamona Heights,…; along with leasing commercial floors with an occupancy rate of more than 80%”, shared the Chairman of TTC.
According to the sharing of TTC Chairman, the real estate market has undergone an extremely difficult period. Businesses must overcome themselves to compete in the new development cycle. Photo: Tieu Bao
When asked about the recent change of senior personnel at TTC Land, he confirmed that in the face of difficulties, the restructuring and supporting of the group’s personnel for the member company is very normal and necessary in this new cycle. Not to mention, the Group also supports TTC Land in solving pending debts so that the company has the opportunity to stand firm in the real estate market.
“Recently, we re-elected members of the Board of Directors in the term to serve the company’s goal and vision to 2030, which is to combine the development of civil real estate with industrial real estate and logistics. Therefore, TTC Land must increase its resources with lots of experience and market understanding to operate and manage this field”, said Mr. Thanh.
Specifically, at the General Meeting of Shareholders, TTC Land approved the proposals on dismissing, changing the number and electing additional members to the Board of Directors, electing the Chairman of the Board of Directors as well as the General Director, submitting to the Annual General Meeting of Shareholders for fiscal year 2023. As a result, Mr. Nguyen Thanh Chuong assumes the role of Chairman of the Board of Directors, Mr. Dang Hong Anh continues to hold the position of Vice Chairman of the Board of Directors, Mr. Vo Quoc Khanh continues to hold the position of Member of the Board of Directors; Nominate 2 more members to the Board of Directors, Mr. Le Quang Vu and Mr. Pham Trung Kien, who are experienced in project law, inspection, and risk management. And, Mr. Vo Thanh Lam assumes the position of General Director of TTC Land, the legal representative of TTC Land.
According to the Chairman of TTC, in the difficult context as it is now, investors (shareholders) will have concerns and grievances about the invested capital, which is understandable. However, when the market still has many challenges, investors accepting to go the long way with the business is a necessary sharing and companionship.
“Throughout the 3 years that the real estate market has been frozen, it has been a great perseverance for enterprises. In this new period, investors patiently stick with the company, when overcoming it, it is both an encouragement to the leadership team, and the business will have compensation”, confided the Chairman of TTC.
According to the report of the Executive Board of TTC Land, in 2023, although the overall market situation and the real estate sector in particular still have many difficulties, TTC Land has made efforts to achieve net revenue reaching 371 billion VND, pre-tax profit reached 81.8% of the plan approved by the Annual General Meeting of Shareholders for fiscal year 2022. In which, gross profit margin improved significantly compared to the same period, increased slightly by 1.7% compared to 2022. The business plan for 2024 with revenue of 705 billion VND, an increase of 89.9% compared to the same period.
