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]
The draft decree detailing the implementation of some articles of the amended real estate business law is under discussion to collect opinions. In this process, there is much disagreement on some new contents such as the classification of legal capital into multiple levels for real estate businesses; some argued this would cause difficulties for the application, some even said it was illegal. Real estate conditions are inconsistent with lawThe draft on conditions of doing real estate business involves the type of contract, including the transfer of house or house lease, available or to be available in the future; transfer partly…... [read more]
Requirements for real estate business individuals and organisations1. Real estate business individuals and organisations must be established under the law and have legal capital of not less than VND20 billion, except they sell, transfer, lease or lease-purchase real estate on a small scale and infrequently or they provide real estate services. 2. Organisations, households and individuals who sell, transfer, lease or lease-purchase real estate on a small scale and infrequently are not required to establish an enterprise including:(1) Organisations, households and individuals who sell, transfer, lease or lease-purchase real estate not coming from investment into…... [read more]
The current provision on the same is VND6 billion ($276,500).A real estate enterprise that has charter capital less than VND20 billion is required to increase its charter capital within one year from the date the law becomes effective. -Notable provisions in terms of real estate business contractsThe law lists and provides the main content, rights and obligations of parties in the main kinds of real estate contracts, such as house/building sale and purchase contract, house/building lease contract, house/building lease-purchase contract, and lease/sub-lease land use right contract, as well as contracts involving whole or part real estate project transfer.Due to the…... [read more]
A report said foreign investors make up 77% of total value of the M&A deals in Vietnam. However, analysts commented that Vietnamese conglomerates have an advantage because they have deep knowledge about the market and business environment, understand customers well and have the ability to approach land funds. One of the M&A deals which caught attention from real estate developers recently was that of CapitaLand, which spent US$52 million to take over the 5,000 square meter land plot in Cau Kho ward, district 1, HCMC. CapitaLand has also announced the purchase of a 90% stake in CapitaLand Thanh Nien to…... [read more]
SAM secures strategic cooperation with two real estate firmsBy Thu Thuy - The Saigon Times DailyHCMC – Fund manager Saigon Asset Management (SAM) yesterday inked cooperation deals with two listed real estate companies, NBB Investment Corporation (NBB) and Construction and Material Trading Joint Stock Company (CNT).SAM will support NBB and CNT in investments, project financing and co-development of real estate projects. Vietnam Property Holding (VPH), a real estate-focused fund currently managed by SAM, confirmed its intention to become a strategic investor with both NBB and CNT in the coming time.“We like NBB because it is a leading property developer and…... [read more]
