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Home PageThe analysisReal EstateProperty sector update: Caution is called for, but not panic

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