Key Highlight 

• Launched units and sold unit in Hanoi market were lower compared to last year figure (-37% YoY and -15% YoY). However, they slowed down compared to Q1 2021 due to new wave of Covid-19 break out in April 2021. 
• In HCMC, the slow granting license issue is still constraining the launching unit. However, high demand for housing in HCMC leaded to high absorption. There are about 3,968 units were launched in Q2, double from Q1 number, more than +50% YoY. Sold unit was positive, with more than 4,700 units, +140% YoY and +76% QoQ; 
• Average price across segments has raised slightly from last quarter ; Steel price and other construction materials such as concrete, stone, sand etc. have reduced after strong raising since early 2021; 
• In Q2 2021, most of large property developers record high growth in revenue y-o-y because the presale in 2019 and 2020 support the revenue recorded were delivered during this quarter. Similarly, NPAT grew strongly with the revenue 
• The credit growth of real estate sector has been similar to total credit growth in Q2 2021 at 5.4% ytd. 

• Property market has been distressed phase since presale across the segments was reduced significantly although Q2 result was positive. Pandemic outbreak leads to prolong and wide social isolation impose, restrain the recovery. It is hurting the economy and the market heavily; we think this would not stop until vaccine is polarized. We are still observing the market to see whether the recovery come back. 

We remain Neutral for residential property sector. Stocks in the sector are recommended to watch:  VHM,NLG, KDH.