HÀ NỘI — The real estate market in HCM City will continue to grow in the second quarter of this year, with particularly strong supply of apartments as about 10,000 apartments are open for sale.

The growth forecast was made by the Việt Nam Association of Property Brokerage, under Việt Nam Real Estate Association (VNREA).

The market tends to develop low-cost condominiums in the surrounding districts, while apartment prices in the central areas continue to rise due to limited supply.

By the end of the first quarter this year, the number of apartments for sale advertised by investors was nearly 34,000 units (of which nearly 19,370 units have not officially opened), nearly equal to the number of apartments offered for the entire year of 2017.

It is expected that in the second quarter, about 10,000 apartments will be officially offered to the market. Apartments in the east and south of the city accounted for a large proportion of supply.

Mid-range apartments will remain dominant in the market. The supply of townhouses and villas shows signs of decline.

According to real estate experts, there are some factors that may affect the supply of apartments offered for sale in the second quarter in HCM City, as the State Bank of Việt Nam may respond to recent increases in inflation by limiting credit. The Carina apartment fire incident also caused some anxiety for purchasers.

Some land real estate investors have taken advantage of this opportunity to leverage the media and promote free-standing homes, which are often more expensive but regarded as safer especially in the wake of the Carina apartment fire. However, the real demand for this type of housing is not high because affordable options far from the city centre often lack infrastructure and transportation access. — VNS