Given the substantial supply of suburban real estate, the price increase until the end of the year is unlikely to exceed 3-5%. The traditional autumn increase in prices in many cases will be offset by various programs promoting customers who are directly related to the provision of discounts.
Related article: Cottage Towns of Kyiv region: Spring 2010Trends
Lower average prices in most of cottage villages in the I quarter of 2010, due to the lag in demand in January and February.
Positive price dynamics of all segments of the suburban real estate market in the II quarter due to seasonal increase in activity of buyers.
Launch of new cottage villages in the economy class format, the implementation of land without a contract.
The shift of the current proposals of-town market to sell only ready-made houses.
Start new discount programs designed to attract customers during the seasonal growth of market activity.
Growth of various marketing activities in the format event party to attract buyers. Important events of this format in the II quarter were held in three towns cottage (Maetok. Pearl of Italy ", Green Hills, Riviera Villas).
A number of applications developers to restore the active construction and development stopped before a cottage town.
Maintaining the interest of developers in the development of suburban real estate, as evidenced by the appearance on the market in the II half of 4 new cottage villages.
Construction of infrastructure facilities in a number of existing towns of medium and high priced for a comfortable residents of the town and attract new customers.
As of June 2010 is the construction of a 45-cottage town. In addition to these objects, a common proposal suburban real estate market also includes 12 completed cottage towns, where a primary realization of households.
The volume of suburban real estate market without taking into account the absorption has roughly 7000 households, 94% of which are implemented in the cottage in some stage of construction. 6% - a ready-made home ownership in the completed cottage town.
In the II quarter of 2010 to market the country real estate published 4 new projects with a total potential capacity of the construction of 343 cottage (the plot). 3 cottage town enlarged segment of economy class - a cottage in the town Bucha, "Kalina-1", "Kalina-2" (the latter two came on the market to offer plots without a contract).
Cottage village Blaue Lagune, located in one of the most prestigious places of Kyiv region - an area large dams, expanded segment of the luxury housing.
Output of the new proposal fell on II quarter, due to traditional seasonal increase in activity in the spring.
In a number of existing cottage towns, where there are initial sales, initiated large-scale work on development of infrastructure component. First of all, developers have begun construction of playgrounds, kindergartens, primary schools and fitness centers.
Seasonal activity of buyers in the suburban real estate market in I half of 2010 was long enough - from March to June, due to the marketing activities of developers, the decline in prices during 2009 and offer a number of projects constructed in the existing cottage town.
Since many of the cottage towns, developers have not implemented their plans to build the promised infrastructure of the settlement, during the I half of Ukrainians prefer undergone some changes.
If previously the main criteria for purchase (after the factors of price and location of the object) were the presence and diversity of at least the stated infrastructure facilities in the cottage, then in 2010, buyers paid attention mainly on natural conditions of the village: contiguity of land to forest, pond and landscape design of the site and public areas.
Demand for suburban properties of all classes concentrated in the segment finished homes. The buyer is willing to consider being built cottage town with an unfinished infrastructure, but the house with the site should be ready at 100% with painted, but rather divorced from all over the house routes.
In the structure of demand trends remain the leader Obuhov direction. Interest from buyers also enjoy the cottage small towns along the Zhitomir and Odessa highway.
The demand structure of the requested budget remains at 2009. Thus, in the economy segment of buyers interested in proposals in the price range of $ 120,000 - $ 180,000, the business segment - $ 250,000 - $ 400,000, cottage elite class - from $ 500,000 to $ 2,000,000.
The greatest demand in the I half of 2010 enjoyed the house, an area of 250-300 sq ft with a 15-30 hectare plots.
Dynamics of average prices for suburban property in the I half of 2010 had similar trends in all market segments.
Thus, the price of suburban real estate elite class in January-February 2010 showed the fall because of traditionally low activity in the market in the winter. In March, against expectations of seasonal growth activity of buyers, developers have raised prices, but the actual number of views and transactions forced them to reduce prices again in April. In II quarter prices for elite country estate remained stable, showing a slight increase (0.61% per quarter).
As a result I half the average price of high-end segment as a whole showed a slight decline due to lower prices in the early months of 2010.
Residential Real Estate business class for the fall semester showed the average price of 13,5%. The main decrease (-15%) occurred in the I quarter, when the developers have offered various discounts, promotions, hot offers, and even direct reduction of prices under the price, trying to increase demand. Beginning in April, this policy has borne fruit, as reflected in the increase in the number of transactions and, as a result of a gradual increase in average prices during April-June 2010.
In the segment of economy class in January, there was also a large-scale price reduction proposals. But since February, due to leaching from the market the cheapest offers and enhance customer, the average prices began to rise gradually.
As a result, up to the I quarter segment showed growth at 5.5%. And for the I half of suburban real estate economy class was the only segment of the suburban real estate market that have demonstrated a positive price trend - 0.95%.
Seasonal growth in demand for suburban housing market was erroneously adopted by many vendors for a new round of market growth. Nevertheless, despite the positive developments observed in the market in April-June, recovery in demand for cottage property can be expected only after the restoration of the urban housing market, and subject to the built-town facilities with reasonable pricing.
In the short term increase in the activity of buyers will not have a significant impact on the pricing sellers. The abundance of supply makes it inappropriate price increases. Price growth during the II half of 2010 may amount to no more than 3-5% (depending on the segment) on individual objects.
In general, the suburban real estate market before the end of 2010 is expected to price stability. Slight variations in average prices are possible during the seasonal increase in demand in September and October, and also because developers use different mechanisms to encourage buyers, most of which are directly related to the provision of discounts.