New reports indicate apartment prices are slipping in Vilnius and Tallinn in the Baltics, and although there are increases in Riga the overall market is dropping. The news is similar in Poland as apartment prices fall 1.8% in Lodz, according to the The Ober-Haus Polish Cities Apartment Price Index for October 2011. The regions have experienced some short-term gains, but apartment prices have taken a dramatic dive since peaks in 2007, with some prices down nearly 60% (Riga) since that time. For more on this continue reading the following article from Property Wire.
The Baltic property market has seen a slowing of growth but prices are still higher than a year ago, according to the latest Ober-Haus Baltic Apartment Price Index.
It shows that apartment prices in Vilnius in October of this year dropped 0.2% and the average price now is €1,207 per square meter. It means that the annual growth of apartment prices has decreased to 1.9% compared to 2.4% in September.
The decrease in apartment prices was recorded in the old apartment sector only, while prices for new apartments did not change in October.
From peak to current apartment prices in Vilnius have dropped by 39.2%. A slight fall in prices also was recorded in Klaipeda and Šiauliai of 0.2% and 0.5% respectively. No changes were recorded in Kaunas and Paneveys in October.
In Riga apartment prices increased by 1.8% to an average of €956 per square meter. Apartment prices slightly increased in the city centre as demand for appropriate apartments exceeds the supply, the index report points out. Local buyers are still active and show interest in small, mostly two room apartments in new projects.
During the past 12 months the average apartment price has increased by 5.3%. From the peak in May 2007 until October this year apartment prices have now decreased by 58.8%.
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The index also shows that the average apartment price in Tallinn decreased 4.2% in October after increasing 7.4% in September. Compared to a year earlier, the average apartment price is up 8.9% to €1,082 per square meter.
The number of sales purchase transactions from January to October 2011 has decreased by 1.4% compared to the same period of 2010.
From the peak of the market in April 2007 to October this year, apartment prices in Tallinn have dropped by 36.6%.
Poland is also seeing a slide in prices. The Ober-Haus Polish Cities Apartment Price Index for October 2011 shows prices have decreased the most in Lódz, down 1.8%. The average apartment price is now €961 per square meter.
The smallest monthly price drop was recorded in Warsaw and Kraków, both down 0.1%. Katowice, Poznan and Gdansk also saw decreases of 1%, 0.8% and 0.4% respectively.
During the last 12 months the price of apartments has dropped from 11.9% in Katowice to 1.1% in Warsaw. From the peak of the market apartment prices have dropped from 10.5% in Warsaw to 29.6% in Lódz.
This article was republished with permission from Property Wire.