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