Estonian Land Board – Seasonal Drop in Real Estate Sales For January

According to analysis of data concerning property prices and transactions from the Estonian Land Board as carried out by real estate firm 1Partner Kinnisvara, whilst January 2012 saw a 40 per cent increase in the number of real estate deals year -on-year, the number actually went down compared with December 2011.

According to 1Partner Kinnisvara managaing director Martin Vahter, as reported on Tõnu Toompark’s Adaur blog, this comes as so great surprise and is most probably seasonal. “The market is being currently shaped by a lot of different factors that are likely to have an impact, for example the exceptionally cold February weather” explains Mr. Vahter.

“At the same time there have been some good signs” Mr. Vahter goes on. “The winter has seen activity from those Finnish people who wish to invest in city centre apartments” he explains, whilst adding that this activity comes from the purchasing power of a market-conscious group of customers.

685 sale-purchase transactions took place in Tallinn in January 2012, which is nearly 25 per cent less than December 2011. The total value of deals fell by 12 per cent over the same period to a value of 49 million Euros.

Apartment price per square metre in January saw no significant variation for the tenth month in a row, where prices have remained above the 1 000 Euro per square metre mark; in this case it stood at 1 036 Euros. The most expensive apartment to be sold in Tallinn cost 350 000 Euros, whilst the cheapest in the city went for 1 500 Euros [editor’s note – such seemingly fantastic bargains are only likely to be found in the outer, Soviet-era dormitory districts, and are most probably affected by other issues].

Twenty one entire residential buildings were built in January 2012, seven less than the previous month. The most expensive deal came to 1.45 million Euros and the cheapest cost 100 000 Euros.

Four unimproved houses were sold in the same month, eight less than in December 2011.

The original article (in Estonian) can be viewed here.

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