Listed firms to spark real estate renaissance

Several listed firms have been able to resume work on stalled projects

Hanoi Post and Telecommunication Equipment Joint Stock Company (Postef), listed under the POT code, is finally progressing with its real estate development at 61 Tran Phu street, Hanoi after three years of delays.

At its recent annual shareholder meeting Postef leaders said the project had finally completed its detailed design and the site had been cleared.

Postef seems confident enough to start another real estate development at 63 Vu Trong Phung street, also in Hanoi. The company expects a detailed design to be finished in the next few months.

Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII), although not a specialist real estate developer, has decided to experiment in the sector.

Apart from purchasing shares and becoming the largest shareholder in some real estate companies, CII has also established a real estate company to invest in their own projects.

CII is currently awaiting agreement to start on developing infrastructure on the northern residential area of the Thu Thiem New Urban Area under a build-operate-transfer agreement which awaits prime ministerial approval.

CII will in return receive land to develop a VND7 trillion ($333 million) real estate project.

Meanwhile, the Hanoi Investment and Construction 1 JSC (HUD1) is targeting a recovery on its investments from the sale of the Linh Dam TT4 residential project and setting up zoning and investment plan for the 176 Dinh Cong residential project in Hanoi. The company is also waiting for the approval to develop the Lien Bao new residential area in Bac Ninh province, 40 kilometres from Hanoi.

Real estate developers, the FLC Group JSC – has kicked off a series of projects, including resorts, recreation, housing and urban development areas during May and June this year in Thanh Hoa province.

The Quoc Cuong Gia Lai Joint Stock Company (QCG), after a period facing difficulties with debt and delays in administrative procedures on its proposal to convert properties for the more popular mass housing market, has begun selling apartments and leasing offices in a series of projects.

According to Quoc Cuong Gia Lai’s management, its Giai Viet project located in Ho Chi Minh City’s District 8 had received a positive response. This has helped Quoc Cuong Gia Lai improve its revenue and allowed it to finance other projects.

Similarly, the Nam Bay Bay Corporation (NBB), after a period of cash flow difficulties, has finally managed to restart a range of projects through a new financial plan that will allow it to proceed with its City Gate, NBB1 and NBB3 developments also located in Ho Chi Minh City.