Mini apartments are granted pink books; Novaland needs 2 more years to pay off debt

Income of no more than 15 million VND/month is eligible to buy social housing; Ho Chi Minh City has not yet applied the adjusted land price list; "Big guy" in social housing has net profit in the second quarter of 2024 increased 8.4 times.

That's some of the real estate news highlights from the past week.

Income not exceeding 15 million VND/month can buy social housing

Recently, the Government issued Decree 100/2024/ND-CP detailing a number of articles of the Housing Law on the development and management of social housing. Accordingly, the Decree has relaxed income conditions for those who want to rent or buy houses in this segment.

According to current regulations, one of the conditions to enjoy social housing policies is that all family members must have regular income that does not have to pay personal income tax - that is, no more than 11 million VND/month.

However, from August 1 - the time Decree 100/2024/ND-CP takes effect, workers with actual income of no more than 15 million VND/month will still be able to rent or buy social housing. In case of marriage, the condition for renting or buying this type of house is that the couple has a maximum income of 30 million VND/month.

The period for determining income is within one consecutive year, calculated from the date of application submission. Previously, the period for income consideration was 3 years.

In addition, the new decree has also removed the requirement that households must have a household registration or temporary residence registration when registering to rent or buy social housing in localities. Instead, the spouse of the registrant only needs to not have their name on the certificate of house and land ownership in the locality where the project is located.

Mini apartment has been granted pink book

The Housing Law 2023 has come into effect since August 1. Now, the new regulation allows for the issuance of certificates for each apartment in multi-storey multi-apartment buildings, also known as mini apartments.

The conditions for mini apartments to be granted pink books are not simple. Photo: Thanh Vu

At the same time, Decree 95/2024/ND-CP has also taken effect, officially "tightening" the conditions for investing in the construction of mini apartments.

Accordingly, in the case of multi-storey houses with many apartments (with 2 floors or more) designed and built for sale/lease or with a scale of 20 apartments or more, the investor must carry out investment procedures for construction of housing projects according to the provisions of law.

This means that investors must meet the conditions for housing project investors such as establishing a business, meeting financial capacity conditions, etc.

Notably, the handover of apartments will only be carried out when the investor has completed the acceptance of the housing project and the acceptance of the technical infrastructure of the area.

For projects with less than 20 apartments, the rooms will only be used for rent. In addition, the construction must still comply with regulations on the construction of individual houses, including requirements on design, construction design review, construction permit issuance, management, fire safety requirements, etc.

Ho Chi Minh City has not yet applied the adjusted land price list.

On August 1, at a meeting on the socio -economic situation of Ho Chi Minh City, Mr. Nguyen Toan Thang, Director of the Department of Natural Resources and Environment of Ho Chi Minh City, said that the land price list that has caused a stir in public opinion recently is an adjusted price list, not a new land price list according to the 2024 Land Law.

“The new land price list will be developed and applied from January 1, 2026. The current adjusted price list is to update current land transaction prices, approved compensation prices, and specific market prices, to ensure no loss in the context of the old price list being too low,” emphasized the leader of the Department of Natural Resources and Environment of Ho Chi Minh City.

Mr. Thang gave an example, if calculated according to the current price list, land prices on some routes are only about 1-2 million VND/m2. Meanwhile, actual transactions are up to 100-200 million VND/m2. Therefore, the city needs to recalibrate the land price list to become more appropriate and accurate.

At the end of this year, the management agency will review the price list to ensure that the content is consistent with the economic situation. If approved by the City People's Committee, the adjusted land price list will be used until the end of 2025.

Ho Chi Minh City has completely removed legal obstacles for 5 real estate projects.

Recently, the Ho Chi Minh City People's Committee reported to the Ministry of Construction on the progress of resolving legal procedural problems of 64 real estate projects in the city.

Accordingly, 5 projects have been completely resolved and 25 projects are being handled by departments and branches according to their authority.

Specifically, the 5 projects that were resolved include: The Metropole Thu Thiem project of Quoc Loc Phat JSC; social housing area of VTHouse JSC and Tam Giao JSC.

Project of Suntory Pepsico Vietnam Beverage Company Limited; Metro Star apartment and commercial complex of Metro Star Investment JSC; Celadon City project of Gamuda Land JSC.

Me Linh is looking for investors for two new urban areas.

Recently, the Hanoi Department of Planning and Investment has issued a notice inviting interested investors to submit applications to implement the new Dai Thinh urban area in Me Linh and Dai Thinh communes.

The project has a total investment of nearly 2,615 billion VND. The land use scale is about 34.44 hectares. It is expected that this will be the place where about 3,000 people live.

According to the plan, the urban area will include 164 low-rise houses with a height of about 3-5 floors; a 20-storey apartment, commercial and office building with about 390 apartments; a 6-storey social housing with 261 apartments...

The investment project's duration is 50 years. Project implementation progress lasts from 2024 to 2028.

Previously, the Hanoi Department of Planning and Investment also announced the search for investors for the new urban area of Me Linh. The project has a scale of more than 40 hectares and is located in two communes of Me Linh and Van Khe.

The project has a total investment of more than 3,200 billion VND. When completed, this will become a home for about 5,000 people.

The new urban area is expected to have nearly 700 low-rise apartments (townhouses, villas, shophouses...) 3-5 stories high; a 10-story social housing building with more than 800 apartments; 2 commercial service buildings 3-9 stories high...

Similar to Dai Thinh urban area, the operation period of this investment project is 50 years. Implementation progress is from 2024 - 2028.

Novaland needs 2 more years to pay off debt

In a restructuring report meeting on July 30, Mr. Duong Van Bac, Chief Financial Officer of Novaland (NVL), said the company plans to pay off all loans and bonds from the first or second quarter of 2026.

Explaining more clearly about the above time, Mr. Bac said that from now until the second quarter of 2025, the company will not focus on selling new products but will concentrate all resources on completing legal procedures to handing over and collecting money for sold products.

If Aqua City's legal issues are resolved, Novaland will complete 90% of the restructuring process. Photo: VGP

This is also NVL's key task in completing the restructuring work. According to the company's estimates, for projects under implementation, receivables amount to more than 100,000 billion VND, while debt on the balance sheet is only about 60,000 billion VND.

From now until the end of the year, NVL plans to complete legal procedures at three projects in Ho Chi Minh City including Victoria Village, The Grand Manhattan and Park Avenue.

For the Aqua City project (Dong Nai), the company plans to complete the local adjustment of the general planning of Bien Hoa City, area C4 and part of the urban area west of Bien Hoa - Vung Tau highway in early August 2024.

Meanwhile, NovaWorld Ho Tram (Ba Ria - Vung Tau) will complete the legal procedures for three subdivisions: Binh Chau Onsen, Happy Beach and Long Island from August to December 2024.

NovaWorld Phan Thiet (Binh Thuan) has two main problems: determining land prices and converting land lease payments from annual to one-time payments. The company said that when the 2024 Land Law takes effect, the project will soon have specific land prices determined as the basis for calculating land rents. The project can receive a construction permit in October this year.

If the legal completion roadmap is followed correctly, Novaland will hand over 2,580 more properties from now until the end of the year.

In terms of cash flow, Aqua City and NovaWorld Phan Thiet are the company’s two most important project clusters. According to Mr. Bac, if Aqua City’s legal issues are resolved, Novaland will complete 90% of the restructuring process.

Regarding the business picture, at the end of the first 6 months of the year, Novaland's consolidated revenue reached 7,065 billion VND, coming from sales, service provision and financial activities; after-tax profit was nearly 345 billion VND.

Of which, net revenue from sales reached nearly VND 1,891 billion, up 37% over the same period last year, recorded from the handover of products at projects such as NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Palm City, Lakeview City (HCMC)...

Coteccons' net profit increased by 343%

Coteccons Construction Joint Stock Company (CTD) has announced its business results for the fourth quarter of the 2023-2024 fiscal year (April 1-June 30). Accordingly, the company's net revenue increased by 82% over the same period, nearly reaching VND6,600 billion. Net profit reached VND59 billion, nearly double that of last year.

If we consider the cumulative fiscal year 2024 (from July 1, 2023 to June 30, 2024), CTD's net revenue reached VND 21,045 billion, an increase of more than 30% over the same period. The company's after-tax profit even increased by 343%, reaching VND 299.5 billion, marking the highest net profit in the past 4 years.

Compared with the newly adjusted business plan, the company has completed 105% of the revenue target and 104% of the profit target.

In fiscal year 2024, the enterprise will have a winning bid value of VND 22,000 billion, mostly from the "repeat sales" strategy - winning bid projects designated by old investors.

In addition, Coteccons has also been assigned many important projects by many new investors such as Pandora's factory in Binh Duong, Suntory PepsiCo factory in Long An, Eaton Park residential area in Ho Chi Minh City of Gamuda Land, Sembcorp Logistics Park Thuy Nguyen project in VSIP Hai Phong industrial park...

However, Coteccons is facing the problem of bad debt. Currently, the company is unable to recover VND483 billion from Ngoi Sao Viet Real Estate Investment Company Limited; VND142 billion from Saigon Glory; VND121 billion from Minh Viet Investment Joint Stock Company. In addition, nearly VND1,500 billion from other partners is only 59% recoverable.

Social housing giant's net profit in the second quarter of 2024 increased 8.4 times

According to the consolidated financial report for the second quarter of 2024, Hoang Quan Real Estate Consulting - Trading - Services JSC (HQC) had sales and service revenue of nearly VND 321 billion. However, due to returned goods, net revenue was only over VND 5 billion.

However, with the cost of goods sold refunded by nearly VND 48 billion, HQC's gross profit still reached nearly VND 53 billion.

After deducting expenses, this social housing giant earned a net profit of nearly VND11 billion. This is the highest result the company has achieved in 20 quarters, since the second quarter of 2019.

In the first 6 months, HQC recorded net revenue of VND18.5 billion and after-tax profit of VND12.56 billion. Although it has grown, this figure is still far from the plan in the shareholders' meeting. Accordingly, the annual revenue and profit targets that the company needs to achieve are VND2,000 billion and VND100 billion, respectively.

Recently, Hoang Quan has poured more than 1,700 billion VND into the HQC Tan Huong social housing project (Tien Giang), Tra Vinh new urban area, Golden City social housing and Grandora Tower (HCMC). The company expects the above 4 projects to contribute 950 billion VND to revenue in 2024.

Previously, HQC surprised everyone when it signed a strategic cooperation agreement with Novaland to invest in building social housing projects. This partnership is expected to provide 3,000 apartments in the near future in Ho Chi Minh City, Binh Thuan, Dong Nai, Binh Duong, Long An, etc.

Source: https://baodautu.vn/batdongsan/chung-cu-mini-duoc-cap-so-hong-novaland-can-them-2-nam-de-tra-het-no-d221496.html