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Central bank reports property price falls intensifying

The fall in the prices of houses and apartments across Cyprus intensified during the final quarter of last year according the latest statistics published by the Central Bank on Monday.

THE RESIDENTIAL property market is showing no sign of recovery after statistics released by the Central Bank yesterday revealed that the fall in prices continued and intensified during the last quarter of 2011.

The latest stats reveal that residential prices in coastal towns continue to be the hardest hit while the capital Nicosia is also showing signs of vulnerability to the ongoing economic crisis.

Overall, residential property prices recorded a decrease of 1.8 per cent, doubling the price fall observed during the third quarter of 2011. The latest decline was slightly larger for house prices (1.9 per cent) compared with apartment prices (1.6 per cent).

The largest quarterly decline in house prices was registered in Famagusta (4.5 per cent), while the largest quarterly decline in apartment prices was in Larnaca (4.2 per cent).

In contrast, Nicosia registered the smallest decline in house prices (0.9 per cent) while a marginal increase in apartment prices was recorded in Famagusta (0.3 per cent).

Despite this, apartment prices in Famagusta have registered the second largest decline (after Paphos) since the first quarter of 2010. On the other hand, residential property prices in Nicosia, although relatively stable at the end of 2010, have also begun to retreat following, to a lesser extent, the downward trend recorded in the residential property prices of other districts.

On a year-on-year basis, residential property prices in Cyprus declined by 5.6 per cent when compared to the fourth quarter of 2010. Apartment prices registered the biggest annual decline since 2010 (7.2 per cent). The reduction was smaller for house prices, which in the fourth quarter of 2011 shrank by 4.7 per cent.

The annual decline in prices was recorded in all districts, with the largest registered in Famagusta (10.7 per cent), followed by Larnaca (8.8 per cent). The smallest reduction in residential property prices was registered in Nicosia (2.0 per cent), which recorded the smallest decline in both house and apartment prices (1.2 per cent and 3.1 per cent respectively).

However, these annual reductions were the largest registered in Nicosia since 2010, suggesting that residential property prices in the capital have also started to be affected by weak market conditions.

Larnaca recorded the largest annual decline in apartment prices (13.9 per cent), while the largest decrease in house prices was registered in Famagusta (8.3 per cent).

Readers' comments

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  • andyp says:

    I sincerely hope the usual suspects don’t try one on with Hang Em Hi. God knows what he will do when he discovers his developers mortgage and his lawyers were helping them out.

  • George says:

    @Costas
    Its not a joke Koumbarie, Im serious.

    @Gavin
    Ha ha.”Fooknodeedy” sounds and rhymes with the Chinese word for ” get rich”. They will love that!!!

    Deviloper
    Have another brandy sour my friend.

    Chinese
    Fooknodeedy, Fooknodeedy. Very lucky!!!

    Deviloper
    You want another flat my friend with Fooknodeedy?

    Chinese
    Yes Fooknodeedy very good.

  • MARTYN says:

    Larnaca region needs infrastructure development and looking likelier to get it. Geographically the Island is very well positioned for future growth, better balanced away from the Brit brigade and attracting much wider and potentially many much better-off visitors. Just need a Government that can properly plan for all this, incl the Gas. what Chance? Hmmm, next Question!!

  • Mike says:

    Sadly the comments will fall on deaf ears. Banks will still use developers indebtedness as an asset on their books and title will remain almost impossible to secure unless vast sums are paid over to clear other peoples debts which, for most, is impossible.

    The status quo will continue until someone else discovers the sun in Cyprus and starts buying in bulk as the British did. Whether that proves to be Russians, Chinese, Iranians, Israelis, Saudis, Belgians, Brazilians or Argentinians remains to be seen. Nothing will change, the problem will remain but be directed at someone other than Brits, Irish and Scandinavians.

    So much for Humans having the capacity to learn by theirs and others mistakes.

  • Andrew says:

    Bill to repossess homes put on the backburner!

    With articles like the above appearing it is hardly surprising that prices are falling.

    It seems that the developers, banks and lawyers don’t think it is wise to stop digging when they find themselves at the bottom of a very deep hole. In fact they seem to be digging ever harder and ever deeper.

    Who would want to buy in Cyprus, now that this dishonesty and corruption has come to light.

    I feel sorry for the ordinary Cypriot. What will they be left with when new buyers avoid Cyprus and thousands have their homes repossessed through no fault of their own. Don’t sell all your goats and vines! The goose that laid the golden egg has just been souvlakied.

  • Gavin Jones says:

    George.

    Aren’t you referring to the Chinese province of Goinggoingdown province in the greater region of Fooknodeedy?

  • Costas Apacket says:

    George – LOL that made me chuckle out loud!

    Cyprus is going to feature in the sequel to Team America if it’s not careful.

    Roneree I am so roneree….

  • George says:

    @Gavin and Frank

    Don’t worry my friends, no problem, soon the boys from Guongdong province will be here to save us, well they only need to save Larnakas, forget the rest except Famagusta region.

    Lets hope their English isnt so good and Chinese government doesn’t tell them all this malakias about title deeds/kouchaneis and soon we will be eating meze again every weekend and spending like a leventis in bouzoukia nightclubs.

  • Frank says:

    @Gavin

    Well put! However, I wish the perpetrators of the Property Fraud neither ‘Rest’ nor ‘Peace’.

  • Gavin Jones says:

    Although the economic downturn cannot be waived away, certainly for potential non-Cypriot purchasers of real estate, it’s all about title deeds.

    You’re dead in the water, Cyprus. No title deeds at point of sale, no more house sales. This in turn spells Armageddon for property developers, banks, construction employment and the wider economy. Because of your greed, inaction and ‘artful ways’, you’re reaping what you’ve sown. RIP.

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