01/04/2020 - 16:09
Property sector update: Caution is called for, but not panic
Caution is called for, but not panic
What’s new?
- Newly launched units increased 3.5% in HCMC in 1Q20. Absorption rates reached 50-80%, depending on the project.
- Some investors are trying to sell at a 5-10% discount to their 2019 cost base.
- All real estate segments have been affected by the economic shock.
- We do not expect a market recovery until late 3Q20 at the very earliest.
Our view
- Selling price momentum has been interrupted.
- Transactions will decrease sharply in 2Q20 despite reduced asking prices in the secondary market.
- Launch date of pipeline projects might remain delayed given the slackening in demand.
- Real estate developers must bear financial expenses without cash inflow from homebuyers.
- Focus on quality: KDH and VHM are our top picks.
For the complete report, please access here: Property Sector Update — April 2020 final
Analyst: Tam Nguyen, tam.nguyen@yuanta.com.vn
