Equity Analysis /

Vietnam Real Estate: Every cloud has a silver lining

    Duong Lai
    Duong Lai

    Real Estate, Building Materials

    Rong Viet
    12 September 2019
    Published by

    In this 25-page report on Vietnam's real estate sector we provide detailed analysis of Nam Long Investment Corp, Dat Xanh Real Estate Services and Construction, Ha Do Group and Vincom Retail.

    Market review

    HCMC: Apartment launches to drop to their lowest level in the last five years

    Hanoi: Sold units exceeded new launches for the first time since 2Q 2017

    Market trends and factors

    Legal procedures still on hold

    Shifting focus towards tier-2 & 3 provinces to capture infrastructure improvement

    New channels to raise capital instead of borrowing from banks

    Market risks

    Surging land prices: Land prices skyrocketed across the country by 50% - 300% to capture long-term prospects. Liquidity has begun to decline in some areas.

    Speculation: The percentage of investors and speculators over a high-rise project in Hanoi and HCMC markets is around 50% (Savills). For a project in neighbouring provinces, we believe the level is higher.