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Dat Xanh Group (DXG VN) – Q1 2025 Earnings Soft as Projects Await Launch
Summary of Q1 2025 results and outlook of Dat Xanh Group JSC (DXG VN)
- Vietnam real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year 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 homebuyers 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.
- DXG recorded no presales during the period as the Prive project (formerly Datxanhhomes Riverside) remained in the groundwork phase. Meanwhile, sales at the Gem Sky World project continued to be sluggish, due to current limited infrastructure connectivity, which has dampened homebuyer interest.
- In terms of delivery, DXG handed over 160 units at the Gem Sky World project during the period, totaling VND409 bn in value. This brings cumulative handovers to 2,250 out of 2,400 presold units.
- Looking ahead, the Prive and Gem Sky World projects will remain the key earnings drivers. At Prive, DXG recently received foundation work acceptance for certain sub-divisions and aims to officially launch sales in the coming months. We forecast 2025 average selling price to be broadly in line with secondary market prices in surrounding projects. This is based on the preliminary price of VND99 mn/sqm that DXG announced during its recent kick-off event, with discounts of up to 11% offered for early payment. However, as the project targets the high-end segment, sales progress may fall short of our previous projections in the coming years. For Gem Sky World, the planned operation of Long Thanh International Airport in 2026, located 14km from the project, is expected to spur urbanization and industrial development, boosting housing demand from workers and specialists. DXG is expected to relaunch sales of the next phase in the next year to capitalize on the upcoming demand surge.
Interested in DXG? Click here to read more of our previous analysis on DXG’s quarterly earnings.
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