Many southern real estate firms reported sharp profit drops in the third quarter, and the reasons behind these declines reveal how market conditions affect earnings. Understanding the causes helps readers see the link between sales, financing costs and company results.

The Vietnam Association of Realtors said 31,844 new housing units were launched but only 12,520 transactions occurred, giving an absorption rate of 39.3%. At the same time, floating mortgage rates at many banks were 12‑15% per year (9‑10% for the first year), prompting buyers to be more cautious and reducing demand.

Bluemarq Group’s after‑tax profit fell 98% to VND3.2 billion. The company blamed the drop on weaker apartment and land‑lot sales and on higher financial and administrative expenses, while high mortgage rates made potential buyers even more hesitant.

Novaland, in contrast, posted a profit surge with net revenue over VND5.12 trillion, driven by handovers of the Aqua City, Victoria Village and Sunrise Riverside projects. Quoc Cuong Gia Lai recorded a loss because fewer residential units were handed over and the divestment of its hydropower plants removed a source of recurring revenue.