Housing supply may surge in second half

20-Jul-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

As there is no sign of a real estate bubble in the first six months of 2019, the local property market, mainly in HCM City and Hanoi City, is expected to see a strong rise in home supply in the second half of the year, according to a report from the Vietnam Association of Realtors.

The association was optimistic about the growth of the property market in the second half of the year, with the supply of property products likely to surge, the local media reported.

Discussing the performance of the real estate market in the second quarter, Nguyen Van Dinh, vice chair of the association, said at a press briefing on July 17 that the country had supplied 19,000 apartments and 10,000 low-rise houses in the past three months.

He confirmed that these supplies were reportedly higher than figures seen in the first quarter, indicating a potential boom for the rest of the year.

Hanoi and HCM City made up large proportions of the supply, with Hanoi seeing over 7,300 apartments and 400 low-rise houses put up for sale. Meanwhile, HCM City had over 6,500 apartments and 700 low-rise houses on sale. These figures were higher than those in the first quarter.

In the second quarter, the majority of Hanoi City’s housing supply was in the mid-end segment, with over 5,700 apartments. Of the total, some 4,200 mid-end apartments were sold successfully.

In HCM City, more than 4,500 mid-end apartments were put up for sale in the second quarter and up to 3,400 units found buyers.

The association stated that of the total 50,000 real estate products put up for sale in the first half of the year, over 32,000 units were sold. However, the supply and the sale of property products declined against the year-ago period.

HCM City saw the supply plunge 39.1 percent year-on-year, whereas Hanoi City experienced a year-on-year drop of 46.8 percent in the supply of real estate products in the first six months.

The vice chair of the association acknowledged that during the six-month period, the property market, despite a decline in the supply and sale of units against the year-ago period, remained stable, with high demand in the two localities.

House prices rose slightly during the period, but a real estate bubble did not form, he said.

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Category: Business, Vietnam

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