The FINANCIAL — Real estate market activity increased only by 7.6% in June. The market activity improved only slightly in June ending the month with 1790 transactions versus 1663 in the previous month.
Year to day, there has been no significant changes in the number of transactions. The situation on the market in terms of financial strength of buyers has remained unchanged. If in June 2009, 97% of all sales for completed flats and 91% of all sales for land were under $100,000, now the percentage is at 96% and at 93% respectively. The only improvement was noted for off-plan flat sales as the ratio of sales under $100,000 has dropped from 91% to 86%. As it appears, the situation on the market is largely unchanged over the last year.
Activity by type of property.- Compared to May, there has been an improvement in the sales of land parcels and non residential properties, while the residential market has declined slightly. The sales of under construction flats have stayed at the same level. Below is the comparison of the June 2010 statistics with June 2009. As shown, there has not been any significant change in the total number of transactions.
The sales of under construction flats remained stable in June – The under construction flat market stayed at the same level as in May ending the month with 92 transactions.
55 % of all under construction flats sold were under 100 sq.m. –There were 51 under construction flats purchased with the size under 100 sq.m, 41 between 100 and 150 sq.m, 10 between 150 and 200 sq.m and 4 flats sold over 200 sq.m. Average 49 under construction flats sell under 100 sq.m monthly, 18 flats between 100-150 sq.m, 6 between 150 -200 sq.m and only 4 over 200 sq.m.
86% of all under construction flats sold was under $100,000. – There were 9 under construction flats purchased for the price between $100,000 -$150,000 and 4 over $150,000. Average 55 under construction flats sell monthly under $50,000, 15 between $50,000 and $100,000, 4 between $100,000 and $150,000, and only 1 between $150,000 and $200,000 and 1 over $200,000.
The sales of completed flats decreased by apr. 4% over May- The districts that commanded highest number of sales are Samgori, Gldani,, Vake, and Saburtalo. Based on the statistics, average 175 flats are sold in Samgori district, 147 in Gldani District, 138 in Vake and 131 in Saburtalo districts each month.
84% of all sales of completed residential properties were under $50,000.- 854 completed flats were sold under $50,000, 121 for the purchase price between $50,000-$100,000, 24 between $100,000 -$150,000, 11 between $150,000-$200,000 and 6 for the price of $200,000 and over.
87% of all land sales were recorded under $50,000.- There were 354 land sale transactions made under $50,000, 22 sales made for the price between $50,000 -$100,000,7 sales for the price between $100,000 -$150,000, 6 between $150,000 -$200,000, and 16 for $200,000 and over.
Insight,- With June 2010 sales, the market remains at the level of June 2009, and only 6% higher than June 2008 results. Such a downfall in the performance is mainly attributed to the losses in sales experienced in April and general slowdown in May which was the direct result of the elections. If we take the market performance during the past holiday seasons into the consideration, we should not expect any significant improvement in the market activity in the summer season.