It is obvious that in the circumstances of reduced purchasing power of the population, pessimistic expectations, notice of real property tax and therefore very low demand for new housing, companies oriented to the construction of luxurious apartments at the most elite locations in Zagreb and at sea for which there is domestic or foreign demand …
The average price of 1 m2 of new flats in the first half of this year amounted to 10,280 kuna , which is 0.1 percent more than in the second half of last year, or 2.8 percent less than in the first half of 2013. Such developments suggest slowing the fall in prices in the domestic real estate market. But the current level of average prices m2 new flat still below 17 per cent compared to the first half of 2009, when the crisis is not shot down housing prices. The dynamics of price movements of new apartments has a definite impact and the share of dwellings sold under the POS (Program for state-subsidized) due to the fact that the square of such a flat discount (currently 30.9 percent lower) than those at which the flats sold companies and other legal entities.
In the first half of this year, a relatively high 22.6 percent of the total usable floor area of dwellings related to the sale of apartments within the POS. Observing the price m2 of new apartments are sold to companies and other legal entities, POS, it can be seen that in the first half of this year compared to the second half of last year, prices rose 4.4 percent, while in Zagreb by 10.1 percent, while in other settlements decreased by 2.7 percent. It is obvious that in the circumstances of reduced purchasing power of the population, pessimistic expectations, notice of real property tax and therefore very low demand for new housing, companies oriented to the construction of luxurious apartments at the most elite locations in Zagreb and at sea for which there is domestic or foreign demand .
In line with the tendency of directing new construction at attractive locations, there is a visible increase in the share of the cost of building land in the overall average price of a new apartment that is, when it comes to homes that are sold to companies and other legal entities, POS, increased from 20.2 percent in the previous half-year to 21.2 percent in the first half of this year. Due to the fact that in times of crisis is a modest total number of recorded sales of new dwellings (in the first half of this year, only 1,029 dwellings), such expensive apartments and raise the average price above the real market trends.
Similar trends are recorded and Eurostat real estate price index (HPI index) , which includes the purchase of all properties, not just newly built. For Croatia, the index in the second quarter of this year grew by 0.6 percent compared to the previous quarter, while in the second quarter last year, its value decreased by 2.9 percent. That is, after the last three quarters Croatia forefront among the countries of the European Union by force decline in the value of residential property on an annual basis, in the second quarter of this year, the decline has slowed significantly. In doing so, along with the growth of the HPI index in the second quarter of this year by 1.7 per cent on the average level of the EU and Croatia stood among the eight countries that have recorded his fall, with the larger drop in the value of residential real estate than in the US was recorded only in Slovenia (- 9.8%), Italy (-4.8%) and Romania (-3.8%).
In continuation of unfavorable economic developments as well as the still uncleared property market weighed down by a significant number of completed but unsold residential units, as well as properties that are sold in bankruptcy and foreclosures, we expect continued sluggish adjustment in real estate prices. We estimate that the retention or increase prices of new housing act continued orientation of companies and other legal entities to build housing in attractive locations, while on the other hand keep a relatively high proportion of facilities being built within the POS, which will exert downward pressure on average prices of sold new apartment. It is indisputable that the additional uncertainty regarding prices in the property market contribute announced the introduction of real estate taxes, as well as the application of VAT to the taxation of construction land (the application from the beginning of next year).
Source: vecernji.hr