·         The HCMC residential market in the last quarter of 2021 surged after the severe lockdowns in Q3 2021. There was a sharp increase in launched and sold units (7,951 units, +126% QoQ and 5,679 units, +93% QoQ, respectively) in condo segment according to DKRA. However, on a full year basis, new supply fell to a five-year low as the number of newly launched units and sold units decreased 22% and 29% YoY, respectively.

·         In 2022, we believe that the residential real estate industry will be relatively positive driven by the (1) Step-by-step recovery in supply and (2) Booming infrastructure development in upcoming years.

·         Step-by-step recovery in supply. The slow-moving licensing procedures issue would be less severe given the government’s effort in issuing many important decrees/laws in 2021 (c. shortening construction permits granting time). In addition, the high vaccination rate also helps investors to be more confident in organizing offline sale events and contributing to the supply growth of overall market.

·         Booming infrastructure development in upcoming years. The total estimated budget for the medium-term public investment plan for the 2021-2025 period is VND 2,870 Trillion (or USD 120 Bn), an increase of 43% compared to the period 2016-2020 (VND 2,000 Trillion, or USD 87 Bn). Developers who have clean land banks in areas having several nearby infrastructures as HCMC, Ha Noi and satellite cities will benefit from the price spike, leading to better ASP.