Property prices down

[boris]

Av. property prices in Croatia down 1.2% in Sept from Aug & by 5.3% from Sept 09 says property portal Centar Nekretnina.

I am surprised that it is only 5.3%, it should be about 30% IMO!

The property market is dead at the moment!

www.hrt.hr/index.php?id=48&tx_ttnews[tt_news]=88550&tx_ttnews[backPid]=23&cHash=9fcd6e0d56

[Madgolfer]

Full article from Croatian Times

The average asking price of real estate in Croatia is down again this September by 1.2 per cent compared to August, 5.3 per cent on a yearly basis, latest research by real estate portal CenterNekretnina shows.

The analysis of 428,000 asking prices shows that prices in Zagreb fell 1.3 per cent compared to last month or 6.1 per cent on a yearly basis. The Adriatic coast experienced a similar drop of 1.1 per cent, but the annual comparison is slightly lower at 4.1 per cent. The average price per square metre for an apartment on the Adriatic was 1,926 Euros.

In the most important market, Zagreb, the price drops have varied significantly depending on the location. The average asking price for an apartment in Zagreb was 1,818 Euros in September, 0.9 per cent less than last month and 4.7 per cent less than last year.

In some areas, however, the prices are 20 to 30 per cent lower compared to prices in 2008. In Laniste, Spansko, Dubrava, Sesvete and parts of Tresnjevka, the prices have gone from between 1,600 and 2,000 Euros per square metre to 1,200 and 1,600 Euros.

Further drops in prices are expected at these locations considering that the offer is significantly greater than demand, and buyers interested in these locations are holding off awaiting further decreases.

But some other regions closer to the centre and considered good areas for family life have gone down no more than 15 per cent, and the volume of transactions in those locations is relatively bigger.

Apartments in Medvescak are the most expensive with average prices of 2,542 Euros per square metre, which is 40 per cent more than the average apartment rates. Real estate near Maksimir, close to Sljeme, Trnje, Crnomerac and certain part of Tresnjevka is also above average, the daily Slobodna Dalmacija writes.

[Madgolfer]

And this;

Croatian Times

There were 423 apartments finished in the first half of this year in Zagreb, 1,934 fewer than in the same period last year. This marks an 82 per cent decrease in completed apartments and points to a serious crisis in the capital’s construction market.

The Zagreb City Office for Strategic Planning and Development has reported that there were 2,656 apartments under construction. That is a 44.3 per cent decrease from 4,769 for the first half of last year.

The crisis is also visible in the total value of the works done in the first half of the year. They amounted to 540.6 million Euros, which is 31 per cent less than last year.

New orders have also dropped by 60 per cent to 1.99 billion kunas, the internet portal 'Business' writes.

Perhaps they are getting the idea at last!

[3lions]

yep propertyMARKET, its a market, amazing how people don't get it. Sell your house now, and you won't get a sniff, you can't sale a boat when the wind don't blow. La di da.

[Carol]

I don't know if it is true that asking prices are down in my area. There was big price cutting a year ago but not so much now. What is true is that nothing sells unless the advertised prices are of the post-2008 variety and the seller is ready to be flexible. Offers of 20% below asking price are common and it is absolutely, 100% a buyers market.

[ray51]

Oct 5, 2010 20:11:00 GMT 1 Carol said:

I don't know if it is true that asking prices are down in my area. There was big price cutting a year ago but not so much now. What is true is that nothing sells unless the advertised prices are of the post-2008 variety and the seller is ready to be flexible. Offers of 20% below asking price are common and it is absolutely, 100% a buyers market.

Are you referring to Surrey , or to Kastela ?

[Carol]

my area for estate agency business: kastela.

Property prices are all smoke and mirrors in Surrey. Estate agents in the Uk are vile...

[ray51]

Same in Belgium !

[delta]

From what I can see, negotiated prices are about 30 % lower then in 2008, especially for used flats. Lots of sellers are keeping pre-recession prices, but only those who lowered asking prices have a chance to sell.

Today it is quite possible to find decent flat in center of Zagreb with asking price under 2000 euros/m2 and still buyers are asking for additional 10 – 15 % reduction.

[crojoe]

Still need to fall a lot. Many buildings just sitting idle, either half finished or no one can afford them right now. At 2000 euro a sqm people are holding tight the cash or not accepting credit. I wouldn't say it's a buyers market. Needs to fall to say 1500 sqm at least. I just don't understand this "wait and see" policy often used by building companies. If anything, slash prices and get your money back. I wouldn't be surprised if the builder borrowed the money from the bank in the first place. If it's a loaned, then all that will happen is the prices will go up at the interest rises.

[crojoe]

If you've got MAX TV, in the movie section there is an interesting documentary by Micheal Moore on "Capitalism". While I don't agree with everything Moore puts out, it's a good illustration on what happened in the States and what might be happening here.

Gives you something to think about with Sanador joining a USA think tank a while back, being a consultant to firms, all the while being investigated for odd practices.

[delta]

All depends on exact area where those buildings are located. While it is the true that most of new flats located on periphery are empty, many apartments in 1st class locations are sold even with prices above 2500 €/m2. For example, new flats in Zavrtnica area in Zagreb are sold quite easily and there are not many empty flats left there.

I recently had a client who wanted to buy a flat in that area, he was explaining to me that presently almost nobody is buying, apart of him, and that because of that owner has to accept his offer, which was some 30k € lower that asking price. I told him that there are several other potential buyers interested in that flat, but his response was that he is confident owners will not be able to sell it this year and that they will have to accept his price. As it turned out, flat was sold for 15k € more then he offered in 2 weeks.

[londoncro]

What about the Russians who are paying millions for all those ruins?

[happy]

Funny how there is always that real estate agent who will try to talk up the market regardless of what is happening in reality!

[delta]

Well, we do have obvious interest in motivating people to buy, ha ha.