The number of property transactions has begun to increase, particularly land-related ones. Land prices have risen 10 to 30 per cent in certain parts of HCM City since the end of last year.

The real estate market is also exhibiting a surprising ability to absorb all available investment, including bank credit. In the country’s biggest real estate hubs, Ha Noi and HCM City, about 10 major projects alone have absorbed more than US$1 billion in bank loans. Half of all foreign direct investment this year has been in the real estate sector.

Many major housing projects have been launched in Ha Noi and HCM City – like Phu My Hung, Ciputra, My Dinh, and Trung Hoa-Nhan Chinh. All this has encouraged individuals and funds to again buy into promising real estate firms, driving their prices up sharply. The Thu Duc Housing Development Joint Stock Company (TDH) share price is now at around VND70,000, and that of the Binh Chanh Construction Investment Shareholding Company (BCI) has risen from VND20,000 at the beginning of the year to VND44,000.

Independent analysts said investors have been interested in the latter since it began construction of the luxury BCCI Tan Tao 1 apartment project last month. The project includes four 16-floor blocks comprising about 500 apartments.

Many investors are also keen on the Hoang Anh Gia Lai Group (HAG) share, which now trades at about VND75,000, partly because of its ambitious expansion plans. HAG has set itself a target of building 2.5 million square metres of apartment and office space for lease by 2012.

The Song Da Urban and Industrial zone Investment and Development Joint Stock Company (SUDICO) is one of few stocks to trade at above VND100,000 thanks to its plans to develop a clutch of major projects.