Realtors predicted that home prices will fall

25.07.2011 09:28
Real Estate Market Analysis | Realtors predicted that home prices will fall President of the Union of experts on real estate of Ukraine (SSNU) Alexander RUBANOV predicts decrease in the cost of housing on the secondary market of Kiev within the 1-1.5% monthly for 1.5-2 years.

As correspondent UNIAN correspondent, he said at a news conference.

Related article: In Kiev the average price per 1 sq. km. meters of real estate decreased by 8.5%

A. RUBANOV noted that in April this year in the housing market of the capital was fixed regular price "bottom", when the average value of the "Dormitory," was about 50 thousand dollars, the standard one-room apartment - about 70 thousand dollars, one-bedroom apartment - about 95 thousand dollars, three-room apartment - about 125 thousand dollars

"I think this is a price" floor "is not the last, because we will still capture the dynamics of the cost reduction of about 1-1.5%, depending on the segment. We anticipate that this process will still take quite a long time, at least 1.5-2 years. So now expect some growth, we estimate that a bit premature, "- says President SSNU.

According to him, from June 2010 to June 2011 average price of housing supply in the secondary market of Kiev has decreased on 8,5% - from 1949 to 1787 USD / sq. m

In turn, chairman of the National Council "Realtor Chamber of Ukraine" Alexander Bondarenko considers that the trend of falling housing values ​​may not be as lengthy as a price "floor" can be achieved by the turn of the year, after which comes a revival of the market and a slight increase in prices.

According to experts, at the end of November this year we can expect the cost reduction on the secondary market capital to 6%.

The president SSNU noted that the fastest way to reduce the cost of poor quality, outdated housing - "gostinok" and "Khrushchev", due to the fact that consumers prefer to buy apartments in new residential complex with infrastructure. According to A. Rubanov, the difference between the cost of poor quality and new housing will grow.

According to him, before the crisis, the cost of "Khrushchev" in the city center was 2-3 thousand dollars / sq ft in residential areas - 1.7 thousand U.S. $ / sq ft, while today the average cost of housing in this category of housing is 1.1-1.3 thousand dollars / sq.

A. Bondarenko also noted that the volume of transactions in housing in Kiev and Ukraine dropped by several times: before the crisis in the capital each month consisted of 3,8-4,8 thousand transactions, while in Ukraine - 350-400 thousand transactions, today is the number of transactions for the year passes.

The NA "Realtor Chamber of Ukraine," adding that in the regions of the country's housing market is characterized by a decrease in the number of transactions, reducing the cost of housing, approaching the cost of housing on the secondary market to the primary, lower profitability of developers for housing up to 10-12%. In this case the primary market only buy ready-made housing.

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