The average price of 1 m2 of new flat 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. These developments suggest a slowing decline in prices in the domestic real estate market. But the current level of average prices m2 new flat still below 17 percent 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 of state-subsidized) due to the fact that the square of such a flat lower prices (currently 30.9 percent lower) than those at which the flats sold companies and other legal entities, according to a commentary analyst at CCC slowing falling prices of new flats.
Their comment in its entirety and without modification:
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 flats under the POS. Observing the price m2 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 in elite locations in Zagreb and at sea for which there is a domestic or foreign demand . According to the tendency of directing new construction in attractive locations, notable is the rise in 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 with 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, a modest total number of registered new dwellings sold (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 recorded by Eurostat and the 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, as compared to 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, the growth in the HPI index in the second quarter of this year by 1.7 percent on the average level of the EU and Croatia stood among the eight countries that have recorded his fall, with a higher decrease in the value of residential real estate than we recorded only in Slovenia (- 9.8%), Italy (-4.8%) and Romania (-3.8%). During the continuation of unfavorable economic developments and the still uncleared property market weighed down by a considerable number of completed and unsold residential units, as well as real estate which sold in bankruptcy and foreclosures, we expect continued sluggish adjustment in real estate prices. We estimate that the retention or increase the price of new housing act continued orientation of companies and other legal entities in the construction of residential buildings in attractive locations, while on the other hand keep a relatively high proportion of objects that are built within the POS, which will exert downward pressure on the average price of sold new apartment. It is indisputable that the additional uncertainty regarding prices in the housing market contribute announced the introduction of taxes on real property, and the application of VAT on building land taxation (since the beginning of the following year).
Source: poslovni.hr