Real estate results transfer to bourse

Sky-high prices 2018 is expected to be a good year for real estate stocks in Vietnam as investors make their way back to an industry that has been troubled with oversupply, price bubbles, and rampant speculation. One catalyst for this revival is low valuation, according to Truong Hien Phuong, director at the Ho Chi Minh City Branch of KIS Vietnam Securities. Phuong pointed out that the price-per-earnings ratio of real estate stock now stands below 10, which is much below the Vietnamese average of 17 or 18. Savvy investors could make use of this opportunity to purchase stock at low prices. Indeed, some investors have already noted this and taken action, causing a boom in stock prices. According to figures released by KIS Vietnam Securities, in 2017, more than 80 per cent of real estate stocks have risen by at least 50 per cent in market value, some by 200 per cent. In notable cases, Dat Xanh Group’s (DXG) stock increased by 95 per cent;  Van Phat Hung Corporation (VPH) grew by 96 per cent; Thu Duc House (TDH) rose by 87 per cent; FLC Corporation (FLC) increased by 31 per cent; and Nam Long Group (NLG) expanded by 54 per cent. The number of listed companies in the real estate sector increased from 11 to 57 at the end of last year, the KIS report shows. Long-term appeal However, low prices alone are not enough. The majority of investors will only buy into cheap stocks if they believe in… [Read full story]


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