Positive Signs at Major Construction Sites
Once a major real estate developer, the events of early 2022 forced FLC to restructure its entire operation to ensure its survival and prepare resources for a new journey.
In mid-April 2024, investors turned their attention to the relaunch of the FLC Quang Binh project. This project, spanning over 2,000 hectares, was once envisioned as the largest resort complex in Central Vietnam. It had completed phase 1 and part of phase 2 before construction was halted, leaving behind a desolate landscape of unfinished structures. FLC’s decision to restart the project has rekindled hope for investors who have been associated with it over the years. The new development at this project also marks the unexpected return of FLC after a period of silence.
In addition to FLC Quang Binh, FLC has also relaunched several other projects and is actively working to accelerate progress so that these unfinished projects can be completed soon, during the period of 2024-2025.
At the FLC Premier Parc project in Nam Tu Liem, Hanoi, workers are actively constructing various parts of the project as per schedule. Site observations show that the project’s infrastructure is approximately 70% complete, while tiling and landscaping are gradually being completed. Construction of low-rise buildings is 90-95% complete in terms of the structural framework. According to the developer, this project is the beginning of the smart real estate segment on the site, spread over an area of 6.4 hectares, with an investment of nearly 3,000 billion VND.
At the FLC Tropical City Ha Long project, an urban project that has generated significant interest in the Quang Ninh real estate market and has consistently recorded impressive liquidity during the period of 2018-2020, positive signs are also emerging. According to observations of the actual progress of phase 1, the project’s infrastructure is approximately 90% complete. Workers are currently completing the low-rise area with 1,209 units, which will then be handed over to customers. For the high-rise condominium component, Tower T2 is complete and ready for use, while Tower T3 is also structurally complete. In addition, phase 2 of this project is also under construction, with the infrastructure approximately 40% complete.
The Homeliday Eo Gio project in the FLC Quy Nhon Eco-Tourism Zone in Nhon Ly commune, Quy Nhon city, Binh Dinh province, is also seeing a surge of activity on-site. This 9-hectare project has already completed approximately 80% of its infrastructure, excluding electrical and water systems. The contractor is currently working on 161 out of 315 villas, with the foundation reaching 50% completion and the structural framework to follow. According to the developer’s announcement, this is one of the key projects under development. The expected handover to customers is in 2024.
Homeliday Eo Gio is one of the key projects under development.
The 15-hectare project in Sa Dec city, Dong Thap, called FLC La Vista Sadec, is also being pushed forward by FLC to meet the basic handover schedule for customers in Q4 2024. Currently, the project is approximately 70% complete. This project has been carefully planned and includes commercial townhouses and a shopvilla complex. Once operational, the project is expected to enhance the quality of life for local people, improve the urban landscape, and upgrade the service infrastructure of Dong Thap province.
Market “Eagerly Anticipating” New Supply
The市場 has been sluggish, even stagnant, over the past 2 years, creating a “thirsty” real estate sector that has struggled to find new supply. Therefore, the projects to be developed in 2024 are expected to provide the market with a more abundant supply during the recovery cycle. This is why news of recent project developments has attracted the attention of the entire market.
The low-rise area of FLC Tropical City Ha Long is currently being completed.
For FLC, the revival of these projects is particularly noteworthy because it demonstrates a significant effort in the face of a challenging market and the company’s own difficult history.
Moreover, for a real estate developer, fulfilling commitments and maintaining customer confidence are of utmost importance, as it is their responsibility as the developer. Therefore, FLC’s decision to focus its resources on initiating and implementing key projects will be a critical step in its restructuring process, rebuilding the FLC brand in the market, and generating cash flow to sustain and restore its operations. This decision will also help meet the market’s expectations for new supply in the real estate sector.
According to information from the company’s 2024 Ordinary General Meeting of Shareholders, FLC has set a revenue target for its real estate sector of VND 1,187.2 billion and committed to completing the construction of its projects as promised to customers. The group will also continue to restructure and redefine its core business areas, focusing on three main pillars: real estate development, resort operations, retaining quality assets, and pursuing mergers and acquisitions of projects to restructure loans and maintain business operations.
