Property sales recorded a new decline of 51% in June, reflecting the bad conditions in the sector after Eurogroup’s decisions.
More than that, restrictions in transactions prevent the completion of purchases.
The decrease in sales is seen in all cities even in Paphos, despite the interest that was shown in the first months of the year from foreign investors, particularly the Chinese.
According to Land Registry figures released today, the deeds of sale in June 2013 fell to 267 compared to 543 in June 2012, recording an annual decrease of 51%. In May, the decrease amounted to 75%.
According to the property valuator, Polys Kourousides, the decrease in sales was anticipated due to the lack of liquidity in the market.
"People expect the situation in the banking system to be stabilized in order to make movements”, Mr. Kourousides noted, stressing that "the only solution for the industry's recovery is to offer incentives to foreign investors."
"Following the Eurogroup decisions”, said realtor Antonis Loizou, “the situation has deteriorated. Until April the impacts were not apparent because the deeds concerned transactions of previous months”.
Chinese interest weakens
The competent organizations emphasize that in addition to lower domestic demand the interest of foreigners, mostly the Chinese, has dropped due to the "bad behavior" of certain land developers.
Mr. Loizou, said that although the Chinese market was booming from October 2012 to April 2013, it has slowed down due to the Eurogroup decisions and the behaviour of certain land developers who sold homes at a value higher than the actual one.
"Developers should be very careful because the Chinese market is the only market left and we should not think that we can exploit them because there are other countries that offer similar incentives”, he emphasized.
For the period January-June, the deeds of sale declined 52% to 1779 from 3710 in the corresponding period last year.
Sales have dropped in all towns.
The largest decreases were observed in Nicosia (-71%) with sales falling to 291 from 1008 last year and in Famagusta (-67%) from 344 last year to 112 this year.
Sales in Limassol and Larnaca dropped 55% and 49% respectively.
In Paphos, the reduction amounts to 18% with sales reaching 632 from 769.
More than that, restrictions in transactions prevent the completion of purchases.
The decrease in sales is seen in all cities even in Paphos, despite the interest that was shown in the first months of the year from foreign investors, particularly the Chinese.
According to Land Registry figures released today, the deeds of sale in June 2013 fell to 267 compared to 543 in June 2012, recording an annual decrease of 51%. In May, the decrease amounted to 75%.
According to the property valuator, Polys Kourousides, the decrease in sales was anticipated due to the lack of liquidity in the market.
"People expect the situation in the banking system to be stabilized in order to make movements”, Mr. Kourousides noted, stressing that "the only solution for the industry's recovery is to offer incentives to foreign investors."
"Following the Eurogroup decisions”, said realtor Antonis Loizou, “the situation has deteriorated. Until April the impacts were not apparent because the deeds concerned transactions of previous months”.
Chinese interest weakens
The competent organizations emphasize that in addition to lower domestic demand the interest of foreigners, mostly the Chinese, has dropped due to the "bad behavior" of certain land developers.
Mr. Loizou, said that although the Chinese market was booming from October 2012 to April 2013, it has slowed down due to the Eurogroup decisions and the behaviour of certain land developers who sold homes at a value higher than the actual one.
"Developers should be very careful because the Chinese market is the only market left and we should not think that we can exploit them because there are other countries that offer similar incentives”, he emphasized.
For the period January-June, the deeds of sale declined 52% to 1779 from 3710 in the corresponding period last year.
Sales have dropped in all towns.
The largest decreases were observed in Nicosia (-71%) with sales falling to 291 from 1008 last year and in Famagusta (-67%) from 344 last year to 112 this year.
Sales in Limassol and Larnaca dropped 55% and 49% respectively.
In Paphos, the reduction amounts to 18% with sales reaching 632 from 769.
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