FIGURES published earlier today by the Cyprus Central Bank for the second quarter of 2016 appear to contradict other recently published property price indices that report property prices have stabilised or are rising.
In its Residential Property Price Index for the second quarter of 2016 the Central Bank reports that the general home price index fell 0.5%, with house prices falling by 0.6% and apartment prices falling by 0.2% compared to the previous quarter.
Famagusta saw the largest quarterly fall in the home price index (-2.9%) followed by Limassol (-0.8%) and Nicosia (-0.6%). However Larnaca and Paphos saw marginal increases in home prices of 0.4% and 0.1% respectively.
On an annual basis, the home price index fell 1.7% in the second quarter, with house prices falling by an average of 2.1% and apartment prices falling by an average of 0.4%.
In its report the Central Bank notes that it employs a different methodology to that of RICS (Cyprus) as it uses data collected from the commercial banks. (RICS, which uses a methodology developed by Reading University in the UK, reported that house prices rose 0.3% over the quarter and by 1.1% annually, while apartment prices rose 0.2% over the quarter and by 1.1% annually.)
But despite the figures reported today, the Central Bank remains optimistic about market trends. “The recent slight fall in the home price index reflects a stabilisation trend on the market and/or a reversal of negative trends.”
The Central Bank also referred to positive trends in the property sector including an increasing number of sales (up 31.6% compared to the same period last year and reaching levels similar to those in 2011) and increased sales of cement.