Total outstanding loans of real estate companies accounted for 64% of assets. Inventory value has increased by 15% in 2016, at over VND105,000 billion.
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Increase by 15%
According to statistics of Ho Chi Minh City Real Estate Association – HoREA, Ho Chi Minh City has more than 500 projects stopped deploying. This is the sinking part of the inventory iceberg. But even businesses are doing well, inventory is growing fast.
The financial statements of the fourth quarter of 2016 showed that 25 companies have profit growth compared to 2015, 19 companies reduced interest and 6 companies reported losses.
It is worth mentioning, the total value of inventory of enterprises has increased by 15% in 2016, at more than VND105,000 billion. In particular, Vingroup Group led with over VND32,133 billion.
According to representatives of Vingroup, out of VND 32,133 billion, VND28,700 billion belongs to products that have been paid by the buyer, not inventory.
Novaland Group joined the stock market by the end of 2016 also brought more than 15.636 billion in inventory. By the end of 2015, Novaland’s inventory was just over VND7,158 billion.
Ranked third in the list of companies with the largest inventory of real estate industry is Kinh Bac City Development Share Holding Corporation with VND8.243 trillion.
Similarly, Ha Do Group has the highest inventory growth. By the end of 2015, Ha Do will have only VND985 billion in inventories. By the end of 2016, the company’s inventory was VND2,442 billion, up 248%.
Of the 10 largest real estate companies in the country, Sacomreal had VND3.606 trillion, Khang Dien Housing Investment and Trading Joint Stock Company had VND4.762 trillion, Nam Long Investment Joint Stock Company had VND3.698 trillion, Construction Investment Development Corporation had VND2.855 trillion, Binh Chanh Construction Investment Joint Stock Company had VND1,619 billion …
Another point worth noting is the total outstanding debt of real estate companies listed on the stock exchange about VND238,000 billion. This represents an increase of 24% over the end of 2015 and accounts for 64% of the total assets of the real estate industry. In particular, the borrowing and financial debt are over VND 82.00 billion.
Sacomreal is the company with the fastest debt growth. By the end of the fourth quarter of 2016, the total assets of Sacomreal are over VND 7.498 billion. But the debt of this company is up to 4.236 billion. In particular, short-term debt is more than VND3.533 billion, long-term debt is only VND702.7 billion. Sacomreal’s debt exceeded equity, with VND3,262 billion.
Compared to 2015, Sacomreal’s liabilities increased by VND2,273 billion. Short-term debt increased by VND2,009 billion, while long-term debt increased by VND264 billion.
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Ha Do Group has total assets of more than VND6,518 billion, the debt to pay up to VND4.820 billion. By 2015, the debt of Ha Do is only VND1.694 billion. Thus, the debt of this company increased nearly three times in 2016.
Not only large inventories, liabilities of the Novaland Group also accounted for 72.5% of total assets. From District 3 to District 4 of 2016, Novaland’s outstanding debt increased by nearly VND2,000 billion.
According to HoREA, outstanding loans in HCM City in 2016 reached more than VND1.374 trillion, up 19.3% compared to 2015. Of which, credit in the property market reached about VND150 trillion, accounting for 10.6% of total outstanding loans of HCM City and accounted for 35.2% of total outstanding loans of real estate in the country. This is an increase of 14.2% compared to 2015 and higher than the real estate credit growth of the country, up only 8.5%.
The bad debt ratio in the banking system in HCMC in 2016 is 3.79%. Only bad debt of real estate accounted for about 2.6%. HoREA said that the real estate market in 2017 is still in the growth cycle but will slow down compared to 2016.
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