"Catching the wave" of real estate sector stocks

To capitalise on the real estate sector's stock market, investors ought to pick stocks from companies with solid foundations and promising futures.

Recovery Signal

PropertyGuru Vietnam's Q1/2025 property market report showed that land prices in Hanoi climbed by around 42% after two years. Furthermore, land prices in provinces such as Ninh Binh, Phu Tho, Bac Giang, and Thai Binh have increased by more than 100%. Land prices in the remaining provinces, including Vinh Phuc, Bac Ninh, Quang Ninh, and Thai Nguyen, have climbed by more than 64%. As a result, land values in several areas soared by 44 - 100% compared to the same period in 2023.

Land is frequently regarded as a long-term investment with long-term gains by real estate investors since it has low building costs, is highly valued by banks, and is easy to leverage financially.

Furthermore, the industrial real estate sector offers numerous options. Despite the possibility that FDI businesses face many challenges from the US tariffs, the industrial real estate industry is still viewed as having significant expansion potential.

Furthermore, the rapid expansion of infrastructure will enhance logistics connectivity and create new opportunities for enterprises. The industrial real estate sector is predicted to continue to attract clients in 2025, thanks to a strong foundation of open-door policies and competitive advantages in labour, infrastructure, and social stability.

Furthermore, the Vietnam Association of Realtors (VARS) predicts that the resort real estate industry would be a growth area in 2025. Positive elements influencing the recovery of this area include a significant increase in the number of tourists, particularly international ones. At the same time, the government has been actively implementing measures to fulfil its goal of making tourism an important economic sector by 2030.

In 2025, new legal regulations such as the Housing Law, Real Estate Business Law, and Land Law are expected to remove barriers to investment projects, resulting in increased supply for the property market. Decentralisation of management, particularly the empowering of province People's Committees in project approval and implementation, is a crucial step towards reducing administrative procedures and accelerating urban development.

However, the Vietnamese real estate sector is facing numerous obstacles. One of the most significant challenges is the high cost of real estate due to restricted supply. This has increased the cost of land and homes, making it difficult for people to obtain housing. Furthermore, access to loans remains limited due to high lending interest rates and the lack of considerable improvement in capital mobilisation channels for real estate enterprises.

What stocks to pick up?

From the above analysis, many analysts said investors would consider the following real estate stocks:

The first are Novaland Real Estate Group's NVL shares. It has released its 1Q25 financial statement, which shows net revenue of VND 1,778 billion, up 155%. Real estate transfer revenue increased by 225% over the same period, owing mostly to the company's acceleration of house handovers in a number of significant projects, including NovaWorld Phan Thiet, NovaWorld Ho Tram, Aqua City, Sunrise Riverside, Palm City, and so on. Notably, Working Group 5013 assessed and addressed impediments to the issuing of house ownership certificates for the Palm A Low-rise Housing Project, in which NVL is a stakeholder. With the advantages listed above, investors might consider investing in NVL shares when they are at VND 12,000 per share.

Vinhomes Joint Stock Company's VHM shares come in second. This company recorded a profit after tax of VND 2,652 billion in 1Q25, approximately three times greater than the same period in 2024. The key driving reason behind VHM's commercial performance is the progress of projects such as Vinhomes Royal Island (Hai Phong) and Vinhomes Ocean Park 2, 3 (Hung Yen).

VHM has recently continued to execute two industrial park (IP) projects in Hai Phong. Ngu Phuc IP (Phase 1) covers over 238 hectares in Ngu Phuc and Kien Quoc communes (Kien Thuy district), whereas Tan Trao IP (Phase 1) covers over 226 hectares in Tan Trao and Kien Quoc communes. The two IP projects are expected to generate significant revenue and profits for VHM. Investors can consider investing in VHM shares when they are priced around 70,000 VND per share.

The CEO Group shares come in third. Phu Quoc has officially launched significant initiatives to service APEC 2027, including airport expansion (capacity for 20 million passengers) and An Thoi international port (100 hectares). In addition, the Politburo authorised Quang Ninh Province to create a pilot policy project for the Van Don Economic Zone based on the special economic zone model.

The CEO has a huge land fund that benefits from the aforementioned regulations, which includes 450 hectares in Phu Quoc, 300 hectares in Van Don (Sonasea Van Don Harbour City), more than 80 hectares in Rach Gia, and many other important regions. This will assist the CEO in meeting both objectives: a strategic land fund and good financials. Investors can consider investing in CEO shares when they are priced around 16,000 VND per share.