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ANALYSIS & RESEARCH

Home PageThe analysisReal EstateReal estate market recuperates if mid-end housing dominate the new supply

Real estate market recuperates if mid-end housing dominate the new supply

05/07/2019 - 15:46

Event: We attended an analyst briefing with property firm DKRA in Ho Chi Minh City on July 4. The firm presented their views on the property market trends in 2Q19 and outlined their expectations for 2H2019.  In this note, we present a brief summary what was new and/or interesting to us from the briefing.

Company profile: DKRA is a major property brokerage based in southern Vietnam. The firm also offers services including research, project development consulting, real estate valuation, and sales services.

Land market in 2Q19

Condo market in 2Q19

Townhouse and villa segments in 2Q19

 DKRA’s overall outlook for 2H2019

Our view: Since 2018, inspections and investigations of real estate deals have caused delayed licensing for property developments, leading to a sharp fall in new supply in HCMC’s central districts (luxury/high-end housing). We believe this has led developers to shift to suburban areas (and mid-end/affordable housing). In the long term, we expect the authorities to ensure that the supply shortage is not prolonged. Based on our discussions with industry players, projects that do NOT involve landbank sourced from state-owned enterprises and BOT agreements (which exchange infrastructure for land) seem to more easily obtain licenses. Therefore, we expect HCMC’s real estate market to stabilize gradually going forward.

Please see the link for the full report:Real estate market recuperates if mid-end housing dominate the new supply

Analyst: Tam Nguyen, tam.nguyen@yuanta.com.vn

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