Key highlight

1. Launched units and sold unit in Hanoi market were stronger compared to last year figure (+170% y-o-y and +94% y-o-y). However, they slowed down compared to Q4 2020 due to new wave of Covid-19 break out in Hai Duong province. In HCMC, the slow granting license issue is still constraining the launching unit, leading to reduction in both sold and launched units across the market. However, high demand for housing in HCMC leaded to high absorption.
2. Average price across segments has raised significantly.

1. In Q1 2021, most of large property developers record high growth in revenue y-o-y because the presale in 2019 and early 2020 support the revenue recorded were delivered during this quarter. Similarly, NPAT grew strongly with the revenue,

4. Steel price and other construction materials such as concrete, stone, sand etc. have increased significantly.
5. The credit poured into real estate market has been high in Q1 2021 at 3% ytd, grow 12% y-o-y, account for 19.6% of total credit.

SUMMARY

–          Property market has been distressed phase since presale across the segments was reduced significantly. Interest rate would not be reduced further due to the higher risk of the sector.

–          Developers have been strengthening their cashflow witnessed low demand, reduction in presale, raising construction cost which is not stopping yet.

–           More tightened credit which warn by State bank of Vietnam would impact adversely on financial strength and demand for housing.

–          The pandemic in May is currently broke out hurting the market and we think this would not stop until vaccine is polarized. We are still observing the market to see whether the recovery come back.