Month in Review: Tallinn Apartment Average Price Per Square Meter Remains Stubbornly Near Record
The number of apartment transactions in Tallinn remained at the September level in October, but compared to the same period last year, there were a third fewer transactions. The average price per square meter of an apartment at 2,957 euros falls short of the record set in late spring by only a few tens of euros, commented Martin Vahter, head of 1Partner Real Estate.
"The general expectation is that the price should fall, but we haven't yet seen any real evidence to confirm this. The decline in transaction numbers is expected and is primarily due to future uncertainty," analyzed Martin Vahter, head of 1Partner Real Estate, commenting on the fresh statistics, adding that the price trend remains unclear so far. "The average price per square meter of apartments in the capital has remained at the same level for half a year. At the same time, some new developments with overly heated prices will certainly lower their previously asked prices this winter," added Vahter.
In October, 690 apartments were sold in Tallinn, which is practically the same result as in September, when 705 properties changed owners. Compared to October of last year, the number of transactions in Tallinn decreased by 34.5%. The total monetary value of apartment transactions was also the same in October this year as in September. The most expensive apartment sold in Tallinn in October this year cost 1,166,500 euros.
"There is currently a lot of uncertainty and apprehension in the real estate market, which means that the weight of any more precise forecasts is relatively small. In September-October, the number of apartment transactions decreased to the level of summer 2020. Currently, buyers and sellers are, figuratively speaking, eyeing each other and neither wants to make the first move," said Martin Vahter, head of 1Partner Real Estate, adding that no significant price changes have been observed yet.
"All market participants whose difficulties could create more serious problems for the entire sector are well capitalized, and despite the cheaper borrowing rates in the intervening years, banks have been very selective about which development projects to provide funding for," explained Martin Vahter about what is happening in the market.
If, in addition to apartments, we also take into account other properties that changed owners in October, then a total of 879 real estate purchase and sale transactions were made in Tallinn, which is practically the same compared to September and a 33.6% smaller result compared to October of last year. The total value of real estate transactions was approximately 187 million euros in October, or 26% more than in September, but compared to October of the past year, the total sum of transactions was 22% smaller.
1Partner Real Estate publishes the latest real estate transaction market overview at the beginning of each month. On the 1Partner Real Estate website there is a price comparison graph for Tallinn real estate transactions, where you can find a simple overview of monthly changes in the cost per unit area, broken down by city districts as well.
