Prices are still on a rise

Residential property in Minsk - May 2013

For recent years May on Minsk real estate market was the average standard month. Most buyers are not in a hurry and at the same time activity does not fall sharply, as it happens in the summer months. The current May was no exception to this rule. Nevertheless, there were a few quite interesting events. Facts and figures of the last month of spring in review of Realt.by.


The increased demand for apartments in Minsk, which we are seeing the beginning of the year, continued in May. Although the total number of transactions compared to April decreased by almost 20%, the current mark is still a very high figure. Number of apartments bought in Minsk this year is more than ever before.

Last month we wrote about the fact that April was marked by the maximum demand for apartments withing the last 8 years. The same can be said about the last month. Never, in recent years, in May, people did not buy so many apartments. For example, a year ago, number of sales transactions has been 11% less.

Overall, 2013 is breaking all records of buying activity. For comparison, in 2010 the average monthly buy was 709 apartments (excluding rooms), in 2011 - 765, in 2012 - 877 apartments. During 5 months of 2013 the average monthly number of sales transactions has reached 982 apartments. If demand to hold on such a high level until the end of the year, we can safely say that the real estate market figures of the capital in 2013 will be one of the most successful.

On the other hand, number of apartments for sale in May reached the minimum value in recent years. On many fronts market can not meet the demand of customers - it simply has nothing to offer. Budget options on the secondary market remained extremely small. In the primary market proposal was strongly differentiated. On the one hand, the low prices offered mostly for new buildings on early stage of construction, on the other hand, many developers are holding on apartments planning to sell them later. Such a move will allow them greatly increase their profits.

The lack of apartments with the necessary characteristics of average market value for the buyers forced them to move into a higher price range. Thus, in comparison with April of transactions with prices falling in the range of 1200- 1500$/m2 was 40%. At the same time, the apartments at the price from 1600 to 1800$ /m2 are buying a 5% increase.

The growth of average prices of actual transactions in the capital in May was an impressive 5.0%. At the same time, starting in February, the growth rate of prices each month only increase.

We have noticed an interesting trend: in 2012 the best apartments were bought with a price slightly below the market average, in 2013, this situation changed. In the first quarter, these figures were roughly the same as in April and May, the peak sales altogether accounted for apartments for 7-10% more expensive than the average price of the transaction.

With regard to the sales structure, the leaders of demand are one-room apartments, though their share in the structure of supply is much smaller. Also in high demand among buyers enjoy the 2-room apartments.

The growth of average prices in May was 3.3%. This figure is slightly lower than April, but is comparable to the average monthly increase in 2013. Most actively accrete in value the most are snapping up one-room apartments (3.8%) and 4-room apartments (+3.6% mom).

Segment expensive/cheap housing price growth was slightly less than the average for the city, however, it is important to note the fact that the gap between them increases. It is said that in the current situation becomes more expensive, without exception, not only selected segments of the market.

As for the differences in terms of quality apartments, the most active in May, prices rose at an apartment in the Khrushchev and brezhnevki, as well as in modern prefabricated homes. Several dropped asking prices of apartments in stalinkas, but it is rather a compensatory decrease, as the increase in their prices in April was extremely high (6.5%).

Changes in prices in most metropolitan districts proceeded in line with the dynamics of a city-wide. The exceptions were residential areas in the north-east of Minsk (Zeleny Lug, Vostok and Makaenka street), where the growth of prices for apartments exceeded 5.0%. However, almost a quarter of the capital's neighborhoods ended last month with a fall. Among them are several prices fell in the rockery, but in April the area was a city-wide leader. Then there is the price per square meter rose this month to $ 100.

At the end of our review, we offer you a table with the dynamics of prices for apartments in Minsk and in neighboring capitals. More recently, the Belarusian capital was in last place on the list, however, is just 6 months, the average price of the offer we have become higher than in Riga and Vilnius. If the neighbors fluctuations in price since the beginning of the year amounted to +/- 1.5%, in Minsk, this figure is very close to 15%.

by Artem Sakharevich
Realt.by