Real estate Sector Report – Difficulty ahead Key

Highlight

• Launched units unit in Hanoi market were better compared to last year figure and sold unit improved (+32% YoY and +54% YoY). Not many developers bring in new supply to the market although absorption rate is good
• In HCMC, there are significant supply added in Q2, which add total of 15,528 units, mostly in Thu Duc city, up +1,656% QoQ and 170% YoY. Sold unit faced similar upward, with more than 11,259 units, +140% YoY and +802% QoQ.
• The credit growth of real estate sector was at 14% ytd, higher than total credit growth at 9.3% ytd.
• Credit to the sector has been limited to avoid asset bubble

 Comment

•  The property market is facing strong headwind as the monetary tightening start to take place. Poor bond issuing result in the first half impact strongly on the cashflow of developer, which in turn threaten on the completion of projects and banking non-performing loan.
• We remain Neutral for residential property sector.