Land loss. Over half the cost of suburban allotments under construction has fallen by half

18.05.2009 00:00
Real Estate Market Analysis | Land loss. Over half the cost of suburban allotments under construction has fallen by half Following the cost of apartments in the suburb of Kiev plummeted in the price of land for individual construction, purchase of which in the past two years it was one of the safest ways to invest.

Since last November, when the market was marked by a peak in prices, the average cost of land in the Kiev region decreased by 43%, and in areas close to the capital - more than twice. During the summer, according to experts' forecasts, the earth to continue declining at 5-10% per month.

Related article: During the month of land near Kiev down to $ 3821 per sq.m.

Geography prices
As told to "DS" leading specialist marketing company SV Development Sergei Kostecki, over the past six months, the cost of land plots for individual construction in the near suburbs of the capital fell into two or more times.
This process is observed on the global crisis in the economy and reducing the solvency of the population, he finds it perfectly logical.
"The number of end users who buy plots to build their own homes has decreased more than tenfold. Many of them still can not take deposits from financial institutions, others have been considerably reduced monthly income, and construction of houses has become quite vague prospect, some waiting, when the land is still more to lose in price. Speculators also investing in the purchase of plots as an alternative to bank deposits, are no longer interested in acquiring rapidly desheveyuschih plots and generally left the market "- says Mr. Kostecki.
As a result, the ratio of supply and demand reached a record gap. According to realtors, is currently at 15 thousand proposals for the construction of private housing in the suburbs have only 300 actual transactions per month. Most are much smaller than the owners of land in Vasilkovskaya Brovarskom, Vyshgorod, Obukhov and Borispol district.
Here, cost reduction since last November has already reached 43 - 52%. At the same time, the Kiev-Svyatoshinsky and distant from the capital, Makarov, and Baryshevsky Borodyansky dropped in price by only one-third. According to the analyst Academy Red Jaroslav Tsukanova, more rapid depreciation of the most advanced, popular among buyers, and therefore the most expensive areas due to the fact that it recorded the highest number of actual transactions, namely the owners of such buyers are ready to drop the price more than most.
Average value of land in Kiev Svyatoshinsky area, which is also now ranked by the number of actual transactions, decreased less significantly, because for a long time here there was a wide range of prices.
If the Vassilkovskaya area six months ago, weaving went for $ 4-6 thousand in Brovarskom - for $ 5-7 thousand, in Kiev Svyatoshinsky value plots ranged from $ 4 thousand to $ 25 thousand
Due to this average price reduction in this area was smaller than in other regions close to the capital, although many owners are also inferior to their sites for half of their former value.

The more expensive, the cheaper
According to the director of "trajectory" Irina Golovneva, most prices fell the most expensive plots of land, previously used in demand among people with above-average affluence. For example, if six months ago in Irpen asked for a hundred in an average of $ 20 thousand, but today such plots sold for $ 10.8 thousand in Bucha weaving cost $ 15 thousand, but now the real buyers have already offered a $ 5-6 thousand
Substantial decline - more than twice - there and at sites in St. Sophia and St. Peter and Paul Borschagivka, Koncha Zaspa Belogorodka, forester and Kozina. True, analysts say that if six months ago, the number of proposals in these areas, the most expensive pristolichnyh was about 300-400, at the present time are no more than 200.
"This suggests that some land owners are not willing to concede much, and simply withdrew their offer, expecting that within a year or two, prices will return to their former positions," - says Ms. Golovneva.
According to Sergei Kostetskii, a significant drop in the cost of expensive suburban plots due to lack of demand, because affluent shoppers are busy rescuing their business and can not afford extra expenses.
However, according to managing partner of consulting company "Dialog Classic Artem Novikov, speak of a single consolidated market land prices at all close to Kiev and popular among buyers areas today is not necessary. In the same village and even on the same street as proposed sites with the difference in value up to 30-50%.
Land in remote areas of the capital, such as Makarov, Borodyansky, Fastovsky and Kagarlyksky, fell less because, says Irina Golovneva, even before the crisis, they were considered undervalued.
The average cost of weave was there earlier $ 1,5-3 thousand and sell it now for $ 500-1,5 thousand owners are not ready.
"In addition, it is necessary to take into account the factor that these regions are among the smallest in size, and therefore the amount offered in the sale of plots, and the number of actual transactions in the course of which give significant amounts of an order of magnitude smaller than in developed areas of the suburb, - says Ms. Golovneva.

Most Popular
According to Sergei Kostetskii, the main buyers of plots for individual construction today are 30-40-year-old resident of the capital, which are not picked up his plots in the last season (did not have enough savings or there was not enough choice) and have not lost monthly income and savings in banks.
Among them first place in popularity continues to hold the Kiev Svyatoshinsky area, followed by Boryspil, Brovarsky, Vasilkovsky and Vyshgorodsky, and closes the list Obukhovsky.
Decline in the popularity of the latter, previously considered the favorite market experts attributed to the fact that its territory has few decent offers - most of the plots have already built up and sold the houses.
Among the remote areas of promising in terms of sales are only Makarov and Baryshevsky, while at Kagarlyksky, Borodyansky Fastovsky and have a minimum percentage of actual transactions.
The biggest demand is currently used by sites from 10 to 20 ares for $ 20-40 thousand, "We are willing to buy cheap plots in the range of $ 02.05 for a hundred thousand, whereas in the past year, most of the transactions were from plots at $ 10-14 thousand . / weaving ", - said Irina Golovneva.
According to the company SV Development, the main factors when buying are put close to Kiev and the availability of good access roads. Next come the availability of utilities: gas, electricity, water, and the proximity of a lake or river and forest.
And the woods are choosing more often than such small lakes. Most insignificant when buying is the availability of infrastructure - shops, kindergartens and schools, which is little developed in virtually all areas pristolichnyh medium price range.
As for the immediate future land market suburbs, the experts agree that if the realtors will not remove from the databases of the cheapest deals, then monthly until September of this year, prices will be to sink to 5-10%.
In addition, according to Artem Novikov, at the current abundance for sale plots against deficiency buyers cost areas located within the same locality, will begin to level off over time will not exceed one third of the price of building a house.
"If we talk about allotments economy class, they will cost between $ 15-30 thousand per hectare 10-20", - concluded Mr. Novikov.

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