"After the market crash in mid-to-late 2022, I'm finally experiencing profitable investments again, especially in real estate stocks," Ngoc said.

Throughout the first few months of the year, she focused on bank and retail stocks for stability. However, her investment strategy shifted in May as several real estate stocks began to rise and brokers touted the sector's potential.

VHM was her first real estate investment, purchased at 65,000 VND. Initially aiming for an 88,000 VND profit, she has yet to sell all her shares despite the price surging to 94,000 VND. "The market is performing so well that I've only sold half. I'm holding onto the rest, hoping to reach 1.5 times my initial investment. If the market shows signs of reversing, I'll sell quickly," Ngoc explained.

This investor admits her risk tolerance has increased. After a substantial loss with PDR 3 years ago, she reinvested in the stock upon hearing about a major M&A deal. Investing over 150 million VND at 16,000 VND per share, she took profits around 18,000 VND. After a price correction, she re-entered the market and is currently enjoying a 22% profit.

Less adventurous than Ngoc, Chi (34) sells his real estate stocks when they reach 10-15% gains. Over the past three months, he's actively traded stocks of all sizes, including VIC, NLG, NVL, HDG, and DXG.

He also made several small trades with LDG, a penny stock that surged 170% in under a month.

"I'm not a fan of high-risk short-term trading, but with the strong cash flow into this sector, it's hard to ignore," Chi explained.

According to Guotai Junan Securities Vietnam, the average year-to-date increase for real estate stocks across all three exchanges is 19%, outperforming the VN-Index (17.4%). Many real estate stocks have returned to their par value after strong gains, notably NVL and DXS.

Dozens of stocks have surpassed the Ho Chi Minh City Stock Exchange's representative index, with VIC and VHM rising 190% and 120%, respectively. Excluding Vingroup stocks, the real estate sector's increase is estimated at 17%.

Pham Hoang Bao Nga, Head of Equity Research at SSI Research, highlights two milestones impacting the real estate market in the first half of the year.

First, the National Assembly passed resolutions on special mechanisms and pilot programs to revive stalled real estate projects and promote social housing development. Second, numerous projects received investment approvals, planning, and construction permits late last year and early this year.

"A project's life cycle is long, and regulatory improvements won't immediately impact the entire sector's performance. However, these developments create optimism about the real estate sector's recovery, fueling recent price increases," Nga explained.

Similarly, Nguyen Thi My Lien, Head of Research at Phu Hung Securities, lists five factors supporting the real estate recovery and influencing stock prices: high demand for housing, returning investment capital, regulatory improvements, low-interest rates, and increased infrastructure investment.

Following recent gains, Lien notes that real estate stock valuations are no longer cheap, especially compared to sectors like banking, pharmaceuticals, retail, consumer goods, and commodities. She also believes that financial difficulties and increased land use fees under the new land price table may hinder real estate companies from immediately sharing profits with shareholders through dividends.

"However, from a long-term perspective, this period could be considered a mid-term bottom for both the sector and its stocks," the Phu Hung Securities expert said.

Investors monitor the electronic board at a securities company in Ho Chi Minh City. Photo: Quynh Tran

Investors monitor the electronic board at a securities company in Ho Chi Minh City. Photo: Quynh Tran

While many investors report substantial profits from real estate stocks, experts agree that the current price increase is more fragmented than in previous years.

According to SSI Research's early July statistics, 20 residential real estate stocks listed on the Ho Chi Minh City Stock Exchange are outperforming the VN-Index, while 30 are lagging. SSI experts attribute the strong performance of the top stocks to companies with large land banks, progress in legal matters, or projects entering the sales phase.

"Investors should be selective and closely monitor key projects of their chosen real estate companies to make informed decisions, rather than assuming the sector's overall recovery benefits all," Nga advised.

Phuong Dong