According to a securities company report, during DXG’s October 22 meeting, company leaders shared updates about the Gem Riverside project. They confirmed the goal of canceling all previously signed purchase agreements and restarting the project with new pricing.
Approximately 300 remaining purchase agreements are expected to be canceled before the project’s relaunch in Q1 2025. Yuanta Vietnam quoted DXG’s management as saying that two new projects located near DXH Riverside (formerly known as Gem Riverside, near the Thu Thiem area) now have prices exceeding VND 100 million per square meter. Construction has been restarted, with the groundbreaking ceremony taking place in October. DXG aims to complete the foundation work and obtain sales permits before officially launching sales, anticipating more favorable market conditions in Q1 2025.
DXG did not provide a clear answer regarding the long-term impact of unilaterally canceling purchase agreements on the company’s brand reputation and the new selling price after canceling the bookings. The leadership only stated that this was an undesirable situation due to prolonged administrative procedures. The board’s decision was made after carefully considering the balance of interests between the company and homebuyers. Affected buyers have two options: (1) receive a refund of their deposit (approximately VND 250 million) with compensation interest of 10-15% per year, or (2) purchase the apartment at a new discounted price (the discount amount was not disclosed).
YSVN assessed that DXG’s unilateral contract cancellation was not entirely unexpected, as the company had previously urged customers to cancel sales agreements due to project uncertainties. At the time of the initial signing, the apartments were priced at around VND 30 million per square meter, but the market price has since increased to over VND 70 million per square meter.
Project introduction information of Gem Riverside in 2019. Gem Riverside is located opposite the Palm City project, invested by a joint venture between Keppel Land – Tran Thai – Tien Phuoc.
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Gem Riverside spans 6.7 hectares in Thu Duc City, Ho Chi Minh City. A report issued by Vietcap Securities Joint Stock Company on October 23 stated that DXG obtained a construction permit for this project in September 2024. DXG is negotiating with old customers (approximately 300 units) who signed purchase agreements for the project with the company in 2019. The company plans to complete the foundation work and launch sales in Q1 2025. According to Vietcap, this project will start selling in 2025 and be handed over to buyers in 2027.
In other news, YSVN reported that early in October, the People’s Committee of Dong Nai province requested DXG to resolve issues related to homebuyers at the Gem Sky World project, such as delayed home deliveries and financial matters, by October 5. Failure to comply could result in the suspension of all administrative procedures for the project. Additionally, a document circulating in the market indicates that the tax authority initiated an investigation on September 23 into suspicious transactions involving Mr. Luong Tri Thin, former Chairman of DXG’s Board of Directors and current Chairman of DXG’s Strategic Council.
During the October 22 meeting, DXG stated that they had completed all the infrastructure and were ready to launch the next phase of the Gem Sky World project. DXG is currently negotiating with approximately 700 homebuyers to finalize the home handover process and intends to soon commence the next phase.
According to Vietcap, about 60% of the products at the Gem Sky World project have been sold (almost unchanged from the end of 2023), with 40% already delivered, resulting in a backlog of approximately 700 units that can be handed over and recognized. DXG expects to recognize 30-40 units in Q4/2024.
Ha Le
