Real estate and stock market in Viet Nam

Abstract

Both stock and real estate markets account for large capital mobilization channels for the country thus the fluctuations of both markets research for the factors affecting the two markets are always essential.The results of the study bring some meaningful policy implications for policy makers and also for individual investors. The first is that when a real estate company's inventory decreases, it is a sign that the liquidity of the real estate market causes rising real estate prices and the profitability of the project company is building. Therefore, the price of the stock will increase along with the expected profit of the project to be formed in the future. This is the first sign that individual investors can rely on to decide to invest in stocks of real estate sector. Next, when interest rates fall, it will be a condition for a real estate bubble to appear, causing house prices to increase along with rapid rise in corporate profits, causing P/E to decline, so when interest rates are strongly decrease is also the time when investors should pay attention to real estate stocks since that is the time when stocks are undervalued.