Metropolitan housing continues to get cheaper

13.01.2011 16:07
Real Estate Market Analysis | Metropolitan housing continues to get cheaper Average prices for apartments in 2010 on the "primary organizations" have not changed, and the "secondary housing" fell 6-6,5%. According to experts, if the mortgage does not resume, the housing prices will continue to gradually decline in the current year.

In late 2009, many realtors and developers have confidently predicted the imminent rise in price per square meter, because the bottom has been reached and no place to fall further. " But the knock on the bottom and it turned out that prices have not reached their limit and they have to fall, writes the Economic News.

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According to the CEO Academy Blagovest Irina Lukhanin, due to lack of effective demand weighted average price of flats sold from January to December 2010 decreased by 6,4%, and according to consulting company "Samson" - at 6.07%.

Starting last year with a slight rise in prices, residential property has increased in price up to April (about 1%). In the early summer was observed correction: prices fell by 1,8%. But in the fall trend has increased, and instead of the expected appreciation of the traditional residential real estate fell by 6.3%.

Realtors say that the least affected economy options. Thus, the popular small-room "Khrushchev" even rose slightly in price. "Now to find an apartment for less than $ 40 thousand is impossible, whereas before, the lower limit was at $ 30 thousand", - complains a leading specialist of the marketing consulting company SV Development Sergei Kostecki.

Shoppers trying to quickly solve their housing problems, snapped up the cheapest offer, like hotcakes. For more money from the population just is not enough, and bank lending, with its average mortgage rates of 11-14% annually, can not help. It is not surprising that the expensive luxury housing (takes about 20% market share), according to the Academy "Blagovest, most subsided - at 11%.

At the beginning of this year, according to Samson, the average price per square meter apartment in the secondary capital market of $ 1.84 thousand Recall that the minimum price crisis, which was observed in April last year, was $ 1.82 thousand / sq. m

In this case, it is not about the price of the real deal, and on the proposal. Market players admit that the apartment owners continue to go up for auction. The size of discount depends on many factors: the initial level of mark-ups, the term exposure of the object, the urgency of the sale, the availability of credit obligations under the facility. Depending on these factors, the discount could range from 5% to 20%.

"If the apartment was originally overestimated if it is exposed to market more than five or six months, or need urgent sale - could receive a maximum discount of 15-20%," - says Lukhanin. She notes that if the price was originally a market, and the terms of sale are not tight, then the discounts get more than 5% failed.

Average price per square meter in the primary market remained virtually unchanged, at $ 1,5 thousand, but this figure is not indicative, because the characteristic trend for new building last year was "bundle" price. So unfinished, with a readiness at least 50% became cheaper - so developers lure buyers who are afraid to "bury" their money in the ground.

If in the beginning of 2010, the lowest price per square meter in such facilities was about $ 1,2 thousand, but now you can find a thousand 0,9-1 / sq. am a very different position occupied by developers, who manage to finish the construction in the past year.

"On the objects at the final stage, which is clearly being completed before the end of the year, prices increased depending on the pace of construction and to increase their degree of readiness", - said deputy general director of a construction company TMM Alex Govorun. So, after the developer drove a box (about 70% complete), the price immediately rose by 10%, and after putting the house in operation - even at 15-20%. In these sites the average price per square meter is about $ 2 thousand

According to experts, if not renewed massive mortgage lending, the events at the capital's residential property market in 2011 to repeat the scenario of last year. The market will operate at low speeds, and prices continue to decline at around 10%. The exception was the most popular apartments: cheap one-room "Khrushchev and the new buildings, which were commissioned in 1995-97.

Content tags: Housing Kiev
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