Realty stocks are attractive: experts

Though difficulties caused by COVID-19 were reflected in the business results of listed realty firms, experts are still optimistic about the market. ​

Realty stocks are attractive: experts hinh anh 1

Investors should focus on some of the most important factors such as clean land fund and legal status of the firms before buying their stocks. (Photo: ndh)

Le Nhi Nang, chief representative of the State Securities Commission (SSC) in Ho Chi Minh City, told a recent seminar on realty stocks that focused on investment strategy amid the pandemic that: “The realty market's difficulties are only short-term.” 

According to SSC, the pandemic was a common challenge to the economy and real estate market whose businesses were facing difficulties when projects were delayed, supply was declining and the market was quiet. 

SSC said those challenges were reflected in the business results of listed firms, causing their revenue in the first six months to decrease by 26 percent, while profit fell by 13 percent over the same period. Among the listed firms, 20 reported losses and 35 saw profits drop. 

Nang was still optimistic about the local stock market, adding: “By now, the number of listed firms with a capitalisation of more than 1 billion USD each have reached 30 on both exchanges, mainly in the banking and finance group and real estate. 

“Listed realty firms with market capitalisation of more than 1 trillion VND (43 million USD), accounted for 23 percent of the whole market.” 

Nang said in the long term, buying demand for realty was still very large, especially in the context of the decreasing interest rates of banks. Therefore, realty stocks are of interest to investors. 

He added: “Realty stocks are divided with strong gainers but strong losers. Investors should be careful to choose good stocks.” 

Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, shared the same opinion, saying: “Among many investment channels, it is necessary to give priority to choosing realty securities. In fact, although the economy is heavily affected by the COVID-19 pandemic, statistics in 2020 shows that the number of individual investors has increased dramatically, the market liquidity is quite high, and the VN-Index has bounced up since its bottom in March.” 

 

Truong Hien Phuong, senior director of KIS Vietnam Securities Corporation (KIS), said that the difficult times of the market have gone and the market will soon open up with medium and long-term opportunities for securities investors, including realty stocks.

Phuong said: “Analysing and selecting potential stocks makes up 50 percent of success in investing. The rest depends on when investors choose to sell.”  

Lai Duc Duong, Head of Real Estate Industry Analysis Department, Rong Viet Securities (VDSC), said: “There are many opportunities for investors in realty stocks, especially short-term investment opportunities. Investors should focus on some of the most important factors such as clean land fund and legal status of the firms before buying their stocks.” 

Duong advised investors of realty stocks to check the land fund of the firms, saying: “The larger the land fund and the clearer the legal status is, the better the firms are as investments.” 

“Currently, many businesses just put projects with full legal status on their financial statements and don't update the projects that still have problems, making investors only see part of the picture, not the overall status of their firms.” 

According to Netland deputy general director Nguyen Huu Quang, investors need to find out about the financial situation and capacity of the business. If some investor buys the stocks at cheap prices, unfortunately many of them will fall into businesses with bad financial situations, adding: “Collecting those shares is no different from collecting garbage.” 

Differently, Nguyen Minh Khang, general director of LDG Company, said that only short-term investors needed to pay attention to factors related to the development orientation and plans of the realty firms. Investors with medium and long-term trends should buy any stocks below par value, with the price of each share below 10,000 VND.

According to KIS Vietnam Securities Corporation (KIS), the real estate industry's outlook was very good as the Government was removing difficult policies for real estate businesses and realty loan rates were listed at an attractive rate, so realty stocks were considered with higher profit by investors./.VNA

COVID-19 could shake up realty rent market in Vietnam

COVID-19 could shake up realty rent market in Vietnam

Le Thu Cuc pastes a notice in her cafe to tell her customers she will continue serving them in a cafe 500m away.  

 
 

Other News

.
Over 14 billion USD mobilised through G-bond auctions at HNX in 2020
Over 14 billion USD mobilised through G-bond auctions at HNX in 2020
BUSINESSicon  06/01/2021 

Nearly VND324 trillion (over $14 billion) was mobilised through G-bond auctions at the Hanoi Stock Exchange (HNX) in 2020, accounting for 108 percent of the set plan.

Vietnam heads towards modern, integrated agriculture
Vietnam heads towards modern, integrated agriculture
BUSINESSicon  06/01/2021 

Minister of Agriculture and Rural Development Nguyen Xuan Cuong talks about measures to promote modern agricultural development.

After fast growth, domestically assembled cars face downtrend
After fast growth, domestically assembled cars face downtrend
BUSINESSicon  06/01/2021 

The year 2020 witnessed many ups and downs of the car market. In H1, demand dropped dramatically because of Covid-19, but in H2, cars sold well thanks to the preferential vehicle registration tax.

Digitizing traditional markets – $10 billion potential
Digitizing traditional markets – $10 billion potential
FEATUREicon  06/01/2021 

Traditional markets and groceries still hold the largest share of the consumer retail market, but new business models are scrambling for a piece of the pie.

Inflation control cannot be taken lightly
Inflation control cannot be taken lightly
BUSINESSicon  06/01/2021 

Although many forecasts said that inflation would be controlled at less than four per cent this year, economists recommended it was still important to pay attention to inflationary pressures.

Concerns for reform
Concerns for reform
FEATUREicon  06/01/2021 

A strategic advisory body on reform and development is essential in the transitional economy in Vietnam.

Cross-border taxation to bolster national budget
Cross-border taxation to bolster national budget
BUSINESSicon  06/01/2021 

Collecting tax from cross-border platforms as well as people profiting from them is the government’s leading mission in 2021.

Fitch Solutions revises up Vietnam GDP growth forecast to 8.6% in 2021
Fitch Solutions revises up Vietnam GDP growth forecast to 8.6% in 2021
BUSINESSicon  05/01/2021 

Vietnam’s strong growth momentum in manufacturing is expected to continue in 2021, supported by growing external demand from trade deals such as the EVFTA, UKVFTA, and RCEP.

Vietnam retail market records $172 billion in 2020
Vietnam retail market records $172 billion in 2020
BUSINESSicon  05/01/2021 

Such growth rate, while remaining lower compared to the 12.7% recorded the previous year, was an encouraging sign for the business community amid global retail market suffering plunge in revenue during the pandemic.

Vietnam sets high GDP target in 2021 to make breakthroughs
Vietnam sets high GDP target in 2021 to make breakthroughs
BUSINESSicon  05/01/2021 

Pressure from high GDP target in 2021 is expected to help the Vietnamese government to create breakthroughs for growth in subsequent years.

Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
Vietnam’s strong economic recovery to further take Vn-Index to nearly 1,300 in 2021
BUSINESSicon  05/01/2021 

The fact that interest rates are still very low, will help the local stock markets continue to be an attractive and profitable channel, thereby attracting domestic investor.

Covid-19 costs Vietnam US$19 billion in export revenue
Covid-19 costs Vietnam US$19 billion in export revenue
BUSINESSicon  05/01/2021 

Vietnam could have earned US$300 billion from exports this year but the export revenue stood at just US$281 billion due to Covid-19, said Minister of Industry and Trade Tran Tuan Anh.

Inspections against transfer pricing to be increased
Inspections against transfer pricing to be increased
BUSINESSicon  06/01/2021 

Inspections against transfer pricing will be increased as per a proposal by the Ministry of Finance in the context that more than half of foreign direct investment (FDI) enterprises reported losses.

VIETNAM BUSINESS NEWS JANUARY 6
VIETNAM BUSINESS NEWS JANUARY 6
BUSINESSicon  06/01/2021 

Agriculture sector targets US$62 billion in export revenue by 2030

Banks report satisfactory business results for 2020
Banks report satisfactory business results for 2020
BUSINESSicon  05/01/2021 

Improving corporate governance and listing shares on the bourse were the major activities of banks in 2020. Digital transformation was also accelerated.

10 outstanding industry and trade events in 2020
10 outstanding industry and trade events in 2020
BUSINESSicon  05/01/2021 

The Ministry of Industry and Trade has announced 10 outstanding events that make their mark on the sector’s success in 2020.

Aviation sector: trying to survive the storm of 2020
Aviation sector: trying to survive the storm of 2020
FEATUREicon  05/01/2021 

2020 was a disastrous year for the aviation and tourism industries, which were hit hard by the Covid-19 pandemic.

Rooftop solar power saw tremendous growth in 2020
Rooftop solar power saw tremendous growth in 2020
FEATUREicon  04/01/2021 

Over 100,000 rooftop solar power works with total capacity of 9,300 MW were connected to the national grid by December 31, 2020.

Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
Overcoming pandemic shocks, maintaining high growth rate, Vietnam is the ‘next Asian miracle’
FEATUREicon  05/01/2021 

Vietnam was among the countries gaining the highest GDP growth rates in 2020, which could serve as a launching pad for further growth.

First trading session of Vietnamese stock market in 2021 opens
First trading session of Vietnamese stock market in 2021 opens
BUSINESSicon  04/01/2021 

The first trading session of Vietnam’s stock market in 2021 opened on January 4, with a gong-beating ceremony held by the State Securities Commission and the Hanoi Stock Exchange (HNX).

 
 
 
Leave your comment on an article

OR QUICK LOGIN