This is the statement made by Nguyen Thanh Son, Director of Nam Long Group (HOSE: NLG) at Nam Long Day on June 9, following the highlights from the market including the recovery after Covid-19 and the potential of the projects and areas in Nam Long’s planning.
There have been signs of recovery on the real estate market
Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, opened the event by a witty comment “This is the first real estate event that I attended after the Covid-19 pandemic, this is a very meaningful event”.
According to Chau, the real estate was already in a difficult situation and Covid-19 made it even more severe. Chau, giving an update on the market in the first 5 months, shared that the real estate market hit the bottom in March and early April as all business activities were suspended nationwide. In May, the number of apartments available on the market increased by 6 times, and the number of properties sold increased by 10 times compared to April. This means that the market is slowly recovering.
Chau emphasized that market nature is not bad considering the high demand and good solvency. The roots of difficulties are the legal procedures and legal institutions, which still have many bottlenecks. Good news is that the Government is drafting a decree to enforce the Land Law stating that public land located on the project site, eligible for corporate projects could be auctioned by the State within 90 days after the land acquisition decision is made, to ensure businesses can purchase and merge the land promptly. If the issue with public land located within the project site is solved, the new decree issued in this coming June will remove difficulties for businesses.
“Nam Long’s projects will be sold out”
Regarding the progress of Nam Long’s projects in recent months, Pham Dinh Huy, NLG’s Investment Director shared that the projects have been carried out on schedule set out by the BOD in the previous meeting. there. Currently, Nam Long is preparing for phase 2 of some projects including the Akari, Mizuki Park, and Southgate to launch products to market. 1,500 products of the Akari launched to market previously were sold out.
With a large and clean land fund (681ha), along with a strong financial capability as the Company’s debt accounts for less than 10% of the capital, Huy believes: “With this capital structure, Nam Long will surely survive despite the economic cycle and the recent pandemic Covid-19. ”
The clean land bank is Nam Long’s strength
Facing the investor’s straightforward question about Nam Long Waterfront’s ability to compete against Novaland’s Aqua City, Nguyen Minh Quang, Sales Director of Nam Long shared that he did not see it as a competitor but more like a friendly neighbor. The fact that many big investors focus on development in Dong Nai will boost the overall economy, create a new landscape, and attract more customers.
When questioned by investors about the ability to deploy and sell products, Nam Long’s CEO, Nguyen Thanh Son, said: “We have planned for 3 years and indeed we also have prepared a 10-year plan. Thereby, despite the market’s ups and downs, Nam Long’s main product i.e. affordable housing will remain at high demand with a consumption rate of 70%. Nam Long has not even met 60% of the total demand. So we will certainly sell the entire existing 681ha and likely the same area in the next 10 years. ”
“At the end of May, we opened the sales for Southgate Long An and within 2 hours, we sold to 75 customers. Thus we are confident the real estate market is recovering faster than expected.” Son also added that the company is planning to bring to market 2,500 products this year and has prepared over 3,800 products to launch if this goes well.
Son also updated on the land bank expansion in 2020. So far, the company almost completes the target. “We are currently considering suitable and beautiful land plots and will start development for 9 hectares in Ho Chi Minh City and 25 hectares in Hanoi soon. The annual budget for land bank development is VND 2,000 billion.”
“This moment is an opportunity for NLG to develop the land bank and prioritize investment in clean and legal land. Nguyen Xuan Quang, Chairman stated that Nam Long’s competitive advantage is the clean lank bank, which is top of mind of the local and foreign investors.