HCMC – Given poor sales performance and tough challenges, real estate businesses in the year’s first half saw their profits dwindling.
There has been a build-up of unsold homes over the past two quarters owing to low sales. Meanwhile, an increase in financial spending, bank loan payments and management costs puts more pressure on property traders and investors.
Most listed property enterprises witnessed small profits.
Quoc Cuong Gia Lai Joint Stock Co. (QCG) had its after-tax profit at a mere VND361 million in the second quarter. The value of its inventories including land lots, leveling prices and investment capital for on-going projects amounted to VND2.84 trillion from VND2.59 trillion recorded early this year.
Phat Dat Property Development Corporation posted the after-tax profit of VND404 million, strongly plummeting from VND22.5 billion from a year earlier, while Dat Xanh Construction Co. saw its second-quarter profit tumbling to VND2 billion from VND10 billion obtained in the previous quarter.
Pacific Property and Infrastructure Development Joint Stock Co. (PPI) reported the after-tax profit of less than VND1.2 billion, equivalent to only one-third of that in the same period last year.
Source: The Saigon Times Daily