It is also the Covid pandemic that has squeezed the demand for investment real estate and is gradually being restarted.
Which group of real estate stocks is ‘breaking the top’?
In terms of long-term investment, Vietnam’s real estate is always a potential market. According to experts, real estate is still a safe “haven” during periods of economic crisis. That is also part of the reason why stocks of real estate businesses are having a strong breakthrough. A series of stocks maintained sustained gains, surpassing all-time highs, forming the biggest and longest tsunami in 2021. Many stocks increased 200%-300% in just a few months. Making a great contribution to the booming stock market, and closing the last session of October 2021 quite impressively when the VN-Index reached 1,444.27 points, setting a new record level after more than 21 years of establishment.
In the blue-chip group, shares of Vinhomes Joint Stock Company (VHM) are the brightest names when having the 6th consecutive increase in price after a period of “silence”. VHM’s market price has increased by 9.6% in just one week, which is considered a big increase in blue-chips.
In the midcap group HDC, NLG, IDJ, NTL, DTA… are bright names, attracting strong cash flow. Many real estate stocks also recorded their highest ever market prices. In which, the Third Joint Stock Company (DTA – Hose) in the third quarter increased by over 200% from the price range of 9,000 to nearly 27,000 VND/share. Or it can be mentioned that Dat Phuong Joint Stock Company (DPG) doubled its potential near the 3-digit price range – the highest market price ever.
This makes the market price level of all stocks raised at 40,000-100,000 VND. Currently, there are nearly a dozen stocks with a market value of over 100,000 VND, besides the “old” faces, there are new “big guys” joining such as Sunshine Homes (SSH), Hodeco (HDC), and most notably, Licogi 14 (L14)
In addition to commercial and construction real estate stocks, the group of industrial park real estate stocks also attracted quite strong cash flow. In this group, there are some prominent representatives such as SZC, PHR, VGC, LHG.
Closely related to the wave of real estate
According to a report by Batdongsan.com.vn, interest in peri-urban provinces such as Binh Duong, Long An, Ba Ria – Vung Tau all increased by 10% in September. The trend of real estate selection in areas The suburbs, where there are well-connected infrastructures, high urbanization rates, liquidity and capital are the big plus points that investors are aiming for.
Share the reason why real estate stocks “break the top”, according to Hello Group Co., Ltd.’s analysis, real estate companies, especially industrial real estate groups, can grow well. and maintain their form for a long time is thanks to 3 main reasons as follows:
The first is the need to move large factories, $23.74 billion of foreign investment flows into the market
Talking about the process industrial zone and starting with the US-China trade war caused a big wave of trade displacement. The world’s major factories began to move to Asia and Vietnam also benefited from this wave. The process of shifting supply chains from China to Southeast Asia will accelerate after the Regional Comprehensive Economic Partnership (RCEP), a free trade agreement involving 10 ASEAN countries and Australia, China, and Japan. Japan, New Zealand and South Korea, could come into force in 2022.
Most recently, from March, the American company Apple began to shift production from China to Vietnam and increase the production of headphones in Vietnam. Or Google and Microsoft are also moving some production lines from China to Vietnam… Especially recently, the world’s media reported that the US has identified Vietnam as a priority partner in the supply chain.
In addition, in September, Vietnamese businesses signed commercial agreements and contracts worth billions of dollars with leading US corporations. For example, Quantum Group (USA) and a consortium of Kinh Bac Urban Development Corporation and Saigon Telecommunications Technology Joint Stock Company (Saigontel) have also joined hands to invest up to 30 billion USD on the same day. 9/22. Recently, T&T Group and UPC Renewables Corporation (USA) also signed a cooperation agreement worth 3 billion USD in the field of renewable energy in Vietnam.
As of October 20, 2021, the total registered foreign investment capital in Vietnam (FDI) reached $23.74 billion, up 1.1% over the same period. This shows that Vietnam continues to be a safe and attractive destination.
The second is the growth engine that comes from the upgrade of infrastructure thanks to the promotion of public investment and untangling legal procedures.
Promoting public investment is considered a key focus of the government in developing the country’s mainstream GDP in 2021. Upgrading infrastructure, convenient connections, airports and seaports creating conditions for the development of production activities, housing demand, making real estate activities more active and vibrant in terms of both selling price and demand.
Previously, legal procedures were cumbersome, overlapping and causing trouble
Smart planning
If Ho Chi Minh City urbanized in the 1980s and strongest since 1986 when the country reformed, then in 1992 Binh Duong just started. However, in less than two or three decades, the urban appearance of Binh Duong province has quickly caught up with its neighbors and rapidly “makeovers”.
Especially in recent years, the speed of urbanization in Binh Duong has taken place clearly. Besides Thu Dau Mot, in January 2020, Di An and Thuan An were upgraded to cities under Binh Duong province. Ben Cat and Tan Uyen towns are invested to improve the quality of urban development according to the roadmap to become a new city. Bau Bang is also a relatively well-planned new urban area and is developing strongly.
Recently, Binh Duong smart area was honored as one of the 7 communities (Top 7) with the typical smart city development strategy in the world in 2021 at the World Smart Community Forum. ICF) in New York USA.
This forum has the participation of nearly 200 prosperous smart cities around the world. This is the first time Binh Duong Smart Zone has entered the Top 7, after 3 consecutive times in the top 21 (SMART 21), alongside cities: Curitiba, Paraná, Brazil; Langley Township, British Columbia, Canada; Mississauga, Ontario, Canada; Moscow, Russia; Townsville, Queensland, Australia; Winnipeg, Manitoba, Canada.
Talking with Panorama Real Estate, Mr. Assoc. Dr. Nguyen Minh Hoa – Vice Chairman of Ho Chi Minh City Planning & Development Association said that Binh Duong possesses the driving force to become a bright spot to attract domestic and foreign investors.
From a macro perspective, Binh Duong’s planning has learned from the ‘forerunner’ of Ho Chi Minh City. Mr. Hoa said that Binh Duong studied in Ho Chi Minh City “both success and failure”, from which he has learned a lot. In parallel, Binh Duong at the very beginning of its development has been linked with many foreign investors, large architectural and planning consulting units in the world, such as those of Japan, Korea, and Singapore. and Hong Kong.
“The planning of Binh Duong is very clear, clear, methodical and classed. The roads and industrial zones of Binh Duong are generally quite good and do not create conflicts, “said Mr. Hoa.
Year of gravity
Regarding urban factors, the following 5 factors help the appearance of Binh Duong urban area in general and “real estate” in particular develop sustainably:
Firstly, Binh Duong is located in the southern key economic region, which is one of the most powerful and dynamic developing regions in the country. The southern key economic regions include Ho Chi Minh City and seven provinces, including Long An, Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh and Ba Ria – Vung Tau. Except for Ho Chi Minh City, in the remaining seven provinces, Binh Duong is the place with the fastest urbanization rate with 82%.
“82% is an incredibly fast rate of urbanization. It can be said that compared to other provinces, it is the fastest,” said Mr. Nguyen Minh Hoa.
Second, Binh Duong now has 48 industrial zones. In which there are many famous industrial parks, such as Vietnam – Singapore – VSIP industrial park. Especially, during the past 10 years, Binh Duong has always been at the top of attracting FDI and only behind Hanoi and Ho Chi Minh City. During Covid0-19, Binh Duong also attracted 1.3 billion USD. This is a very impressive number in the current period.
According to the latest records, the province has also attracted investment from 43 countries and territories around the world, including many advanced countries such as Korea, Japan, Taiwan, Singapore, etc. Malaysia… The special thing here is that the technologies and techniques applied in industrial parks are very advanced, developed by Binh Duong later.
Thirdly, Binh Duong is invested by the Central Government and the province has focused a lot on basic and technical development. If you want to develop real estate, if you want to urbanize, infrastructure – technology must be one step ahead.
Specifically, Binh Duong is working with Ho Chi Minh City and Dong Nai to complete a closed ring road system – Ring 3 and Ring 4. In which, Ring 3 has a border with Binh Duong 30km. The 4-stroke ring road extends for 200km, running through the provinces of the Southeast region, including Binh Duong.
Some other projects that Mr. Nguyen Minh Hoa also emphasized is that Binh Duong is currently completing a radial road from South to North. That is, from Tan Van, My Phuoc to Bau Bang and 64km long. Another road that is being expanded and completed with a length of 70km is Ho Chi Minh City – Thu Dau Mot – Chon Thanh. In addition, the government, the Ministry of Construction, Binh Duong province and a number of partners are discussing the issue of extending Metro Line 1, from Suoi Tien to Binh Duong. Binh Duong will also deploy a BRT bus route connecting Binh Duong city to surrounding areas.
Fourth, Binh Duong has implemented many important projects, in which it is necessary to mention an important factor that Binh Duong has the orientation to build a smart city. Specifically, Binh Duong smart area has just been honored as one of 7 communities with a typical smart city development strategy in the world in 2021 at ICF.
