Vietnam's Property Stocks Attract Investors

Shares of Vietnam’s listed and unlisted real estate companies are attracting most investors after prices of properties have soared between 20 per cent and 30 per cent in the recent time, traders in Hanoi said.

 

The only property market index of the Bien Viet Securities Co, or CBV, which showed it has increased by 78.74 points from early this year.

 

The index is the highest among the ten indexes, which represent ten key economic sectors in Vietnam.

 

VIC and HDC, two newly-listed shares on HOSE, have seen strong growth. So far, VIC shares price has increased 42.4 per cent, and HDC shares soared 76.2 per cent, respectively.

 

Shares of Hoang Anh Gia Lai Group (HAGL) increased 45.2 per cent from early October on the unofficial OTC market after Vietcombank Fund announced to buy a 4 per cent stake, or four million shares, meanwhile, nine other institutional investors hold 27 per cent in the company.

 

Currently, the demand for commercial property in Vietnam is keeping rising due to continuing investment from domestic and foreign companies while the supply is still limited, said experts.

 

The price for property in big cities has increased by average 30 per cent to date.

 

More than 40 foreign funds with a combined capital of US$20 billion are seeking to invest into property projects in Ho Chi Minh City. Many foreign financial institutions have set up funds for real estate in Vietnam, such as the biggest Indochina Land I & II worth US$300 million.

 

About 80 per cent of listed companies have set five-year plans to expand their operations in the real estate market in the future. (VnEconomy)