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Company Quarterly Earnings Update – NLG VN – Q1 2025
Summary of Q1 2025 results and outlook of Nam Long Investment (NLG VN)
- The real estate market recorded moderate new supply, as many projects approved in late 2024 needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. Most new launches came from next-phase of existing high-end projects, creating a persistent supply-demand mismatch that fueled rising prices and softened absorption. Low-rise projects in satellite cities also struggled, as limited infrastructure discouraged buyers from relocating. Looking ahead, gradual supply recovery is expected, coupled with infrastructure upgrades, and initiatives to develop more projects along new metro lines and ring roads, helping developers expand land banks at lower costs and encouraging homebuyers to shift outward.
- In line with broader market conditions, NLG’s sale activities softened with transaction value reaching VND545 bn (-53% y/y), primarily from the low-rise and land-lot projects in Long An province (~40km from HCMC’s CBD) and Can Tho City, where high-unit-value products have seen muted absorption. In contrast, current phases of mid-end apartment projects in HCMC are almost sold out.
- In terms of delivery activities, NLG handed over 548 units with a total value of VND1,253 bn.
- Looking ahead, NLG is well-positioned to benefit from the government’s ongoing emphasis on infrastructure development as a key driver of economic growth. Many highway and ring road projects are slated for completion in the coming years, which are expected to significantly enhance regional connectivity. Enhanced infrastructure is likely to accelerate residential decentralization from the city center, where land availability is limited and housing prices remain elevated. In that context, NLG’s sizable, cleared land bank across key satellite provinces surrounding HCMC, including Long An, Dong Nai, and Can Tho, is expected to support NLG’s presales performance over the coming years.
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