Secondary apartments in Russia have become more expensive, but not for long.

Secondary apartments in Russia have become more expensive, but not for long.

The cost of secondary housing throughout Russia since the beginning of the year has grown by an average of 4.1%. Most of the secondary market rose in the price of Makhachkala (+ 12%), Kazan (+ 10.6%), Perm (+ 10.2%), experts of the federal portal “World of apartments”, who studied the situation in the secondary real estate market in 69 most major Russian cities with a population of more than 300 thousand people.

As for price leadership, here Moscow invariably goes with the laurels. The average cost of a square in the secondary market of the capital is 206.2 thousand rubles. In second place is St. Petersburg, where 114.6 thousand rubles will have to be paid for square meters of secondary housing. Three leaders closes Sochi, with 98.3 thousand rubles per square meter on the secondary market. The five most expensive secondary apartments also included Vladivostok (93 thousand rubles per sq. M) and Sevastopol (87.2 thousand rubles per sq. M). 

The cheapest secondary housing in Magnitogorsk: sq. M here costs 28.8 thousand rubles, then Makhachkala goes - 33.2 thousand rubles per sq. M, Nizhny Tagil - 34.5 thousand rubles per sq. M. The fourth place in Bryansk is 35.5 thousand. rubles worth a square meter here, on the fifth - Kurgan with a cost of a square meter of 36.4 thousand rubles per square.

In Russia as a whole, the cost of square meters was 55.7 thousand rubles. The average purchase budget is slightly higher than 3 million rubles, which is almost 3% higher compared to the beginning of the year. The average Muscovite can quietly change his living space for an apartment in St. Petersburg or Sochi, and at least one more buy for the difference - in any other city in Russia, experts say.

“If we compare the“ golden ”Moscow meters with the outsiders of the rating, then it turns out that metropolitan housing is more than 5 times more expensive than Bryansk, 6 times lower than Nizhny Tagil, and almost 8 times higher than Magnitogorsk,” realtors say.

At the same time, the secondary housing shows an increase in the cost per square meter. If according to the results of the third quarter, the rise in prices on the Russian secondary market was not so noticeable - only 1.5%, then in nine months the cost of the secondary market became higher by 4.1%. Moreover, secondary housing has become more expensive in 60 cities out of 69 analyzed.

“Makhachkala (+ 12%), Kazan (+ 10.6%), Perm (+ 10.2%), Naberezhnye Chelny (+ 10%) and Vladivostok (+ 9.8%) took the lead in terms of growth,” analysts say. At the same time, the secondary housing in Togliatti fell most of all - minus 4%. Secondary housing of the Leningrad Region (minus 3.5%), Moscow Region (minus 1.9%), Tyumen (minus 1.8%) and Izhevsk (minus 1.7%) hit the number of cities that are becoming cheaper.

Since the beginning of the year, analysts of CIAN have also recorded a positive trend in the secondary market. The greatest growth is observed in St. Petersburg and the Leningrad region, where apartments on the secondary housing market have risen in price by an average of 6%. In Moscow and the Moscow region, the rise in prices in annual terms amounted to plus 5%.

In the largest cities of the Russian Federation, the growth of average prices is insignificant - about 2%. The rating of the leading cities in the growth of the average price in the secondary market was headed by the million-plus city Perm - plus 14%. In the second place - Kurgan, for the period under review, prices rose by 13%. Troika closes Kirov, according to the results of the third in 2018, the price increased by 12%, told in CIAN.


Three quarters of the prices in the secondary market showed an increase, the reason for this was affordable mortgage and deferred demand, says the general director of the federal portal “World of apartments” Pavel Lutsenko.


Also, the main reasons include the growth of real disposable incomes and the higher realization of liquid offers compared to expensive lots, adds Maria Borisova, an analyst at TSIAN.


Purchasing activity is now quite high, and cheap offers leave the market quickly enough. According to experts, on average, liquid offers on the secondary market find a buyer for the month. Among the trends, experts point out that buyers in the secondary housing market have practically stopped trading.


In addition, the increase in prices by sellers was a reaction to the emergence of new transport infrastructure facilities, which is especially important for the metropolitan region, adds the analyst TSIAN. The emergence of new metro stations can add to the price of an apartment 5-10%.


"Today, prices on the secondary market are largely determined by the segment of new housing. In many sleeping areas of the capital, apartments on the secondary market are offered at a discount to the cost of apartments in new buildings," says Vladimir Kashirtsev, director general of Azbuka Zhilya.


In addition, changes in the legislation regulating shared construction had a positive impact on the secondary market. According to the Azbuka Zhilya company, since the beginning of the year the demand for a secondary secondary housing estate, for example, has grown by 10% since the beginning of the year compared to last year’s figure, while the volume of the most liquid apartments has decreased by half.


At the moment, the volume of supply in the secondary housing market continues to decrease. At the same time, the cost since the end of 2017 is no longer declining, and demand indicators show a positive trend, says Vladimir Kashirtsev.


The situation on the secondary market, as well as in the housing market as a whole, will be determined by mortgage rates. Earlier, INCOM Real Estate stated that the share of mortgage transactions in the capital secondary market reached a historical maximum of about 40%, and most likely this is the limit.


“Mortgage rates on the secondary market are about to rise again. Under these conditions, it is somewhat premature to expect demand to remain at least at the same level and prices will not surrender to the positions they have won,” says Pavel Lutsenko.


Mortgage rates for the purchase of secondary housing increased state corporation HOUSE.RF, and revised several other banks, including Raiffeisen and Gazprombank. Sberbank, in turn, said that on the contrary, they would lower mortgage rates.


“In the near future, one should not expect significant changes in the secondary market. In the future, further growth in mortgage rates is possible, leaching of more liquid offers, which may lead to a decrease in demand in the secondary housing market,” Maria Borisova also does not exclude. According to Vladimir Kashirtsev, by the end of the year, prices for the secondary market may still grow by 2-3%, but this will be due to a seasonal increase in demand.

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