Unblocking the Years-Long Stalled Project: Real Estate Giants Novaland, Dat Xanh, Hoang Quan, Nam Bay Bay and More Are Back with a Bang

Dong Nai People’s Committee has officially approved adjustments to the master plan at a scale of 1/10,000 for Sub-area C4, which is part of the urban area west of the Bien Hoa – Vung Tau expressway. This move clears legal hurdles for multiple real estate projects undertaken by businesses in the area.

UNLOCKING NOVALAND’S ‘SURVIVAL’ PROJECT, NOVALAND MAKES A COMEBACK

Notably, the Aqua City project, spanning approximately 1,000 hectares and developed by Novaland Group JSC (Novaland, stock code NVL), has been given the green light.

Aqua City is a pivotal project for Novaland, and while it had been launched, it encountered a halt in 2021 due to pending approval of planning adjustments and disagreements over social housing land allocation.

In November 2022, over 750 villas in the project were also revoked of their eligibility for sale, despite the completion of construction. For the past two years, Novaland has repeatedly proposed and petitioned to the competent authorities for legal solutions for the Aqua City project.

In the market, following the positive news about Aqua City, NVL stock immediately attracted cash flow and surged close to the ceiling price on November 20, with a 4.65% increase and a trading volume of over 20 million shares.

GREEN LIGHT FOR GEM RIVERSIDE, CAN DAT XANH OVERCOME CHALLENGES?

Dat Xanh Group JSC (stock code DXG) is gearing up to restart its key project, Gem Riverside. Gem Riverside is the trade name for the CC1 and CC5 high-rise apartment building complex in the Nam Rach Chiec Residential Area, An Phu Ward, Thu Duc City, with Dat Xanh as the developer.

After six years of stagnation due to legal entanglements related to investment procedures and land use charges, the project received a construction permit from the Ho Chi Minh City Department of Construction in September. The company aims to complete the foundation of the project and launch sales in Q1/2025.

Spanning 6.7 hectares, the project comprises 12 towers with 3,175 luxury apartments, ranging from 70 to 100 square meters. A recent report by DSC Securities Company assessed that this project would significantly boost Dat Xanh’s business performance after a challenging period in both brokerage and real estate development segments.

With the revival of this key project, securities companies have been releasing analytical reports on Dat Xanh with titles such as “overcoming challenges” and “unlocking the company’s potential.”

DSC expects Gem Riverside to commence sales in the first half of 2025. The project is anticipated to attract strong interest due to its prime location by the Gong Ong To River, especially amid the severe supply shortage in the Southern market.

AN KHAI HUNG FINALLY FREES ITSELF AFTER 7 YEARS OF LOSSES

Another company that has been “revived” thanks to the unblocking of a large-scale project is An Khai Hung Real Estate Investment JSC. In April 2024, the People’s Committee of Thu Duc City approved the investment proposal for the Truong Thanh Ward Residential Area project, with An Khai Hung as the investor. The total investment capital exceeds VND 1,426 billion.

Previously, An Khai Hung drew market attention when it issued VND 180 billion worth of bonds in November 2021. The company was established in April 2017 in Ho Chi Minh City but had no revenue and incurred losses for several consecutive years. The bond issuance aimed to pay for the land deposit in Truong Thanh, Thu Duc City.

As the project stalled, An Khai Hung had to repeatedly announce extensions for the repayment of principal and interest on this bond lot. However, a revival signal emerged in September 2023, as the company announced the full settlement of principal and interest payments.

In late October 2023, the company increased its charter capital from VND 150 billion to VND 654 billion, including nearly VND 300 billion in cash (45%) and the remaining 55% contributed in the form of land use rights value.

HOANG QUAN GROUP RETURNS TO HO CHI MINH CITY’S REAL ESTATE MARKET

In the western part of Ho Chi Minh City, a long-stalled project has been relaunched: the Central Park and Residential Area 13A, developed by Dong Duong Real Estate JSC – a member of Hoang Quan Group (stock code HQC) in collaboration with Hong Quang Real Estate Construction Company.

The Hong Quang Residential Area (trade name: Hong Quang Urban Area) covers 37 hectares in Phong Phu Commune, Binh Chanh District. Initiated in 2000, the project encompasses nearly 2,000 apartments, houses, land plots, and villas.

However, from 2006 until now, only the land for low-rise housing has been handed over, while technical infrastructure and civil amenities remain unfinished. Some roads show signs of deterioration after years of neglect, and very few residents have moved in.

The company emphasizes that this project marks the group’s return to the Ho Chi Minh City real estate market. In the initial phase of the relaunch, Dong Duong will invest VND 1,750 billion in the high-rise subdivision on an area of over 26,500 square meters, comprising five blocks of commercial apartments, offering approximately 600 units. The project has fulfilled its financial obligations regarding land use levies and is preparing for construction, which is slated to commence in early 2025.

In District 8, Nam Bay Bay Investment JSC (stock code NBB) has also received approval for its NBB Garden III high-rise apartment project, which had been on hold for years due to legal issues. NBB Garden III is planned on an area of 81,550 square meters, offering over 2,100 units of apartments, adjacent houses, and shophouses.

Ho Chi Minh City has also announced the resolution of legal entanglements for eight real estate projects , notably including The Metropole Thu Thiem, Celadon City, Metro Star, and Lotte Eco Smart City Thu Thiem. These are key projects with massive investments, large-scale developments, and diverse offerings. The completion of legal procedures will enable these projects to restart and seek new capital sources.