Monthly Review: Strong Volume Growth Broke the Thousand Transaction Threshold in October
In October, 1,063 real estate transactions were completed in Tallinn, which is over 17% more than in the previous month and also broke the significant thousand transaction milestone for the first time this year, commented 1Partner Kinnisvara head Martin Vahter.
“Over a thousand transactions really brings joy, although we are still a few hundred transactions per month away from so-called truly good times,” said Martin Vahter, who considers the rapidly fallen Euribor to be the most important factor in growth. “Above all, with lower interest rates, both the entry threshold and the specific loan payment are lower, but equally important is people's restored belief that borrowed money is again affordable for them,” added the 1Partner head, noting that transaction activity has been noticeable – if in the first half of the year an average of about 35 transactions per working day were completed in Tallinn and in the third quarter over 40 real estate transactions, then in October there were already over 45 transactions per day.
The average price per square meter for apartments in October was 2,968 eur/m2, which is essentially at the same level as September's 2,930 eur/m2 average. “Input prices are slowly rising, but it's too early to talk about sales price increases, as the supply and demand ratio in the market remains too tilted in favor of the latter. The small fluctuation in average price between months depends more on whether more transactions are done with more expensive new developments or cheaper secondary market apartments,” commented Vahter, noting that the average median price of Tallinn apartments also remained essentially the same compared to the previous month – in October 2,742 eur/m2 and in September 2,766 eur/m2.
In October, a total of 1,063 real estate purchase and sale transactions were completed in Tallinn (906 in September), 852 in October of the previous year. The total value of real estate transactions was approximately 200 million euros, which is about 10% more than the previous month (approximately 182 million) and about 43% more than in October of the previous year.
In October, 35 developed residential land properties were sold in Tallinn, which is 2 more than the previous month. The most expensive developed residential land property was sold for 10,248,000 euros and the cheapest for 77,515 euros. In addition, 9 residential land plots were sold, which is 2 fewer compared to September, the cheapest plot cost 15,270 euros and the most expensive 335,000 euros.
1Partner Kinnisvara publishes a fresh real estate transaction market overview at the beginning of each month. On the 1Partner Kinnisvara website, there is a price comparison chart for Tallinn real estate transactions, where you can find a simple overview of monthly changes in price per unit area by city districts as well.
