The Billion-Dollar Question: Is the Real Estate and Construction Industry’s “Darkest Hour” Finally Over?

HBC Wins Newtown Diamond Project in Danang

Hòa Bình Construction Group, trading under the stock code HBC, has recently secured a contract for the Newtown Diamond Project in Danang, worth nearly VND 1,000 billion.

As the main contractor, Hòa Bình will be responsible for constructing the structural framework for three 38-story towers and a 6-story podium block as part of the Newtown urban, commercial, and premium sports services complex (Newtown Diamond).

Newtown Diamond Danang, spanning 1.47 hectares and with an investment of approximately VND 1,640 billion, is an upcoming luxury apartment project within the Da Nang Beach golf complex developed by Vinacapital Group.

Prior to this, Hòa Bình also announced winning the Eaton Park project, valued at VND 1,900 billion, in Thu Duc City, Ho Chi Minh City, with Gamuda Land as the investor.

Eaton Park boasts a vast construction area of 3.76 hectares and is expected to offer 980 apartments, 20 shophouses, and 52 shops upon completion in 2027.

Hòa Bình’s consecutive wins of these large-scale contracts highlight a positive turn in their business fortunes after years of challenges. This also reflects a recovering real estate market, with major projects overcoming legal hurdles and new developments gaining traction.

Unicons, a subsidiary of Coteccons, has also recently secured a contract for the CaraWorld urban project in Khanh Hoa province.

CaraWorld Cam Ranh, a mega-resort complex stretching over 5km of Bãi Dài beach in Cam Ranh, covers an area of 800 hectares. It is divided into three phases: Para Sol, Para Draco, and Para Grus. The project boasts a diverse range of international five-star standard amenities, including an 18-hole golf course, a commercial center, entertainment areas, spas, swimming pools, restaurants, and hotels. The total announced investment for this project is USD 2.06 billion (equivalent to VND 46,371 billion).

In the first half of the year, Coteccons and its subsidiaries recorded a total value of newly won projects exceeding VND 19,000 billion.

In mid-November, three members of Mr. Nguyen Ba Duong’s contractor ecosystem, Newtecons, Ricons, and SOL E&C, commenced work on the Lumi Hanoi project for CapitaLand Development. As per the cooperation agreement, these companies will serve as the main contractors, undertaking key scopes including structural work, finishing (basement and tower), typical lobby and corridor interiors, MEP systems, façade, infrastructure, and landscaping for the entire project.

CapitaLand Development, the real estate investment arm of the CapitaLand Group, has an investment portfolio worth approximately SGD 21.9 billion (USD 16.3 billion) as of Q3 2024. CLD specializes in integrated developments, retail, offices, residential, commercial, industrial, logistics, and data centers.

Notably, this trio of companies is also part of the Vietur joint venture that won the VND 35,000 billion Long Thanh Airport contract.

Specifically, Ho Chi Minh City has resolved legal issues for eight real estate projects so far this year, including notable developments like The Metropole Thu Thiem, Celadon City, Metro Star, and Lotte Eco Smart City Thu Thiem. These projects involve substantial investments and large-scale developments, offering diverse property options. The resolution of legal hurdles will facilitate the revival of these projects, attracting new capital and stimulating associated industries such as construction and building materials.