2020: Vinhomes is expected to collect 130,000 billion, promote wholesale at big projects
With the advantage of a huge land fund, a portfolio of more than 20 projects is being implemented with support from the ecosystem Vingroup, Vinhomes' sales forecast positive growth in 2020.
Vinhomes is expected to open for sale 46,300 apartments in 2020, estimated to earn 130,000 billion VND
According to KB Vietnam Securities, in 2019, the total number of Vinhomes apartments sold in the three big projects Ocean Park, Smart City and Grand Park reached 58,200 units, bringing in nearly VND 35.9 trillion in revenue.
By the end of December 31, 2019, the total value of signed contracts but not yet recorded revenue reached VND 91.4 trillion, an increase of 31% compared to the previous year.
Notably, this business promotes wholesale, accounting for more than 64% of the total number of apartments sold in the three projects above. Specifically, the Ocean Park project recorded 10,500 wholesale units, Smart City 12,000 units and in Grand Park up to 18,100 units.
Source: Vinhomes Report, KB Securities estimated.
BSC Securities believes that, in addition to three mega-urban projects in key cities, Vinhomes' portfolio of 20 projects ensures business growth in profits and maintains market share in the coming years.
Not to mention, Vinhomes' real estate projects have a great competitive advantage thanks to inheriting from the products and services of the Vingroup ecosystem.
In 2020, Vinhomes plans to open for sale 46,300 apartments, equivalent to a transaction value of about 125 - 130 trillion VND. Of which, there are 40,700 apartments from three major projects being implemented, 26,600 apartments from three big projects and 3,700 apartments from other projects expected to be handed over during the year.
Besides, the company is planning to open for sale the Vinhomes Dream City project in Hung Yen and two projects in Hanoi, Vinhomes Wonder Park in Dan Phuong, Vinhomes Galaxy in Thanh Xuan.
For the Dream City project with an area of 458 hectares, it is expected to provide 5,100 apartments and the 133-hectare Wonder Park project with a total of 1,500 units, starting handover from 2021. In addition, at the Galaxy project, the number of apartments Household is expected to have 7,000 units although the planned area is about 11 ha. This project will start handing over from 2020
Vinhomes continues to lead in land fund and real estate market share
According to aggregated data of KB Securities Vietnam, Vinhomes owns the largest total land fund in the real estate industry, more than 20 times more than the second-ranked enterprise, Novaland.
In more detail, the total land fund of Vinhomes reaches nearly 16,500 hectares and is mainly distributed in two big cities, Hanoi and Ho Chi Minh City. Following that, Novaland owns 670 hectares of land fund, Nam Long with 650 hectares, Khang Dien with 600 hectares of land and Dat Xanh Group with 580 hectares.
For the real estate industry, land fund reflects the growth potential of enterprises in the medium and long term. Enterprises owning a large clean land fund with full legal status that can deploy projects will have a great competitive advantage.
Recently, real estate businesses have turned to accumulate land funds in the coastal provinces with infrastructure being promoted.
Specifically, Vinhomes is currently developing land funds in Quang Ninh, Thanh Hoa and Hai Phong; Nam Long develops projects in Dong Nai and Long An; Dat Xanh promotes acquisition of land funds in Long Thanh (Dong Nai) and Binh Duong; Van Phu has just acquired a land fund of more than 200 hectares in Hue.
Besides, according to CBRE, in the period of 2016 - the first 9 months of 2019, Vinhomes accounted for 22% market share of sold apartments in Hanoi and Ho Chi Minh City. Meanwhile, the next enterprises only hold less than 5% market share. If only counting the high-end segment, Vinhomes accounted for 40% market share, far ahead of the next company, Keppel Land with a market share of approximately 6%.
At the end of 2019, Vinhomes' revenue reached the milestone of VND 51,826 billion, corresponding to a growth rate of 34%; profit after tax reached 24,206 billion dong, an increase of 64% compared to the previous year.
In terms of inventory value, Vinhomes ranked second in the market with more than VND 60,000 billion. In which, 56,300 billion dong of inventory in unfinished real estate mainly includes construction and development costs for projects including Vinhomes Grand Park (District 9, Ho Chi Minh City), Vinhomes Marina Hai Phong and 4 projects in Ho Chi Minh City. Hanoi such as Vinhomes Ocean Park, Vinhomes Smart City...
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