Nam Long Chairman: Real Estate Market No Longer Offers Opportunities for Speculative Investors

As reported by Tuổi Trẻ, Nam Long's Chairman, Mr. Nguyen Xuan Quang, has issued a stark warning about the Vietnamese real estate market for 2026. He asserts that the era of speculative 'flipping' and excessive financial leverage is over, primarily due to persistently high interest rates. This economic reality, he believes, will reshape the market, prioritizing individuals with genuine housing needs over opportunistic investors. While acknowledging the significant challenge posed by rising interest rates compared to the unusually low rates of 2024-2025, Nam Long is strategically pivoting. Instead of designing financial packages for speculators, the company is doubling down on identifying and supporting its core customer base: those looking to buy a home to live in. This includes tailored support programs and affordable housing initiatives aimed at salaried employees and organization staff.

The market, according to Chairman Quang, continues to grapple with persistent paradoxes. A significant one is the widening gap between average worker incomes and soaring property prices, creating a fundamental imbalance. Furthermore, the market suffers from a structural mismatch in product offerings. Adding to these complexities are administrative changes, such as local government mergers, which can potentially disrupt project legalities and implementation timelines, leading to unforeseen delays. These are not just abstract economic issues; they directly impact the daily lives and aspirations of Vietnamese citizens seeking stable housing.

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In the context of high interest rates, investors who flip or abuse financial leverage will have no opportunity, so the market actually only has people buying houses for real needs.

Despite these considerable market challenges, Nam Long has demonstrated remarkable resilience and strategic foresight. The company concluded its 2025 fiscal year with a record-breaking sales performance, reaching VND 11,855 billion, and successfully met both its revenue and net profit targets. Crucially, Nam Long has maintained a healthy financial position, with its debt ratio at a safe 37% of total capital, a reduction from the previous year. This strong financial footing has enabled the company to set aggressive yet achievable targets for 2026, including a projected 35% increase in consolidated revenue and a modest rise in net profit. Nam Long's focus remains on high-potential areas like the Long Thanh airport vicinity and Tay Ninh, while actively seeking new investment partnerships. The company's strategic decision to avoid large-scale Build-Transfer (BT) projects, which require substantial initial capital, underscores its commitment to its core business strategy and financial prudence. This approach, emphasizing sustainable growth and a focus on end-users, positions Nam Long to navigate the complexities of the Vietnamese property market.

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The paradoxes of the market will continue to exist, such as the 'out of sync' between workers' incomes and real estate prices, and the imbalance in the market's product structure.