We believe investor sentiment for the real estate sector will become more positive in H2 2023 due to (1) the State Bank of Vietnam’s (SBV) faster and more substantial than expected policy rate cuts thus far this year and (2) ongoing positive regulatory developments targeted at removing legal/bureaucratic bottlenecks for developers. We therefore lower the discounts that we apply to our RNAV estimates for our residential stock coverage, resulting in an average increase in our target prices of 11%. VHM, KDH and NLG remain our top picks in the sector.

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