Apartment Market Has Reached Slight Stability
The apartment market is quiet, but has stabilized by now. However, the average price level is still dictated by new developments.
Looking at the number of apartments sold in different cities over one month, it has remained quite stable over the past year. If we exclude the interim jumps, which mainly occurred as a result of notarizing a larger number of new developments, apartment sales have remained in the same order of magnitude since late fall last year.
The decline in transaction volumes has not yet been followed by average square meter median prices, which have remained at the same level. Digging behind the numbers, it can be seen that over the year, secondary market apartment prices have fallen, but new ones have risen.
Since the booking of new apartments and more broadly construction has declined, the amount of completed living space and its impact on statistics is slowly running out. Therefore, in the new year we will also see more statistical price declines, as secondary market apartments become more dominant.
As already written in the previous overview, this quiet period will continue and there is probably nothing dramatic to expect before spring.
The apartment market brought no major surprises
The November apartment market followed the previous discussion by example and there were no major surprises. Throughout Estonia, 1695 apartments were sold (1790 in October), with a square meter median price of 2055 euros. Compared to October, the price level increased by 7.2%, while it decreased by 5.8% year-on-year.
In Tallinn, 680 apartments changed hands (679 in October) and the square meter median price came to 2948 euros. On a monthly basis, the price increase was +0.6% and year-on-year +5.8%.
Tartu's apartment market grew again in November and 154 purchase-sale transactions took place (120 in October), with a square meter median price of 2660 euros. If the price level increased by 25.9% month-on-month, then it increased by 11.1% year-on-year. Tartu's statistics clearly show that in November, new apartments had more say, which were handed over to buyers in completed developments through deed of trust agreements.
In Pärnu, November was again quieter. While October was dominated by new apartments, in November the summer resort's apartment market proceeded again in its usual rhythm. 60 apartments were sold (100 in October) and their average square meter median price was 2196 euros. The price level decreased by 8.6% month-on-month and by 6.9% year-on-year.
In Narva, 81 apartments were sold in November (73 in October) and the square meter median price came to 551 euros. Compared to October, the price level of transactions increased by 8% and year-on-year by 5%.
