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Dat Xanh Real Estate Services (DXS VN) – Q1 2025 Earnings – Strong Profit Growth from Brokerage Amid Flat Market
Summary of Q1 2025 results and outlook of Dat Xanh Real Estate Services (DXS VN)
- The 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.
- DXS’s brokerage segment recorded decelerated growth from the previous quarter, while sales of hospitality projects remained weak. Net revenue reached VND512 bn (-4.1% y/y), with brokerage contributing VND202 bn (+6.3% y/y), supported by the increase in new apartment supply in Hanoi. However, this growth moderated due to lower absorption rates, following sharp apartment price hikes over the past year. Despite this, DXS outperformed the broader market, where nationwide apartment transactions declined 6.3% y/y, benefiting from market consolidation as smaller brokerage firms exited during 2023-2024. In contrast, project development revenue fell 12.0% y/y to VND257 bn amid continued weak demand for hospitality housing products. Operating profit declined 22.9% y/y to VND75 bn, driven by an 18.1% rise in SG&A to VND154 bn, mainly from higher salary costs tied to sales team expansion. Net profit rose to VND40 bn (+28.3%), driven by lower financial expenses and reduced minority interest, as brokerage income mainly came from subsidiaries where DXS holds high ownership.
- Looking ahead, DXS is well-positioned to benefit from increased new supply at more affordable prices, supporting brokerage transaction volumes. Many projects are expected to launch sales in upcoming quarters after completing post-approval legal processes. Combined with ongoing infrastructure development, this should improve affordability and stimulate homebuyer demand. Brokerage activities will also be bolstered by major launches from parent company DXG, including the Prive project in 2025 and the next phase of Gem Sky World in 2026, with DXS providing full-service brokerage for both. Conversely, project development is expected to remain subdued as investment demand for high-value hospitality products stays weak.
Interested in DXS? Click here to read more of our previous analysis on DXS’s quarterly earnings.
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