Property sales plumb new depths in May

LATEST figures from the Department of Lands and Surveys show that a total of 214 contracts of sale were deposited at Land Registry offices across Cyprus in May 2013 compared with the 854 deposited in May last year; an annual decline of 75% and, once again, the lowest monthly figure on record.

Of those 214 contracts, 67% (143) were deposited on behalf of domestic buyers, while 33% (71) were deposited in favour of overseas buyers.

Property sales fell in all districts. Nicosia was hardest hit with sales falling to 24 compared with 248 in May last year (-90%). Sales in Famagusta fell to 11 from 85 (-87%), while sales in Limassol fell to 63 from 214 (-71%). Sales in Larnaca fell to 49 from 142 (-66%) and those in Paphos fell to 67 from 165 (-59%).

During the first five months of 2013 a total of 1,512 properties have been sold, down 52% on the 3,166 sold during the corresponding period last year.

Speaking to StockWatch property valuer Polys Kourousides attributed the decline in sales on the Eurogroup decision to restructure the banks and the haircut on uninsured bank deposits.

“There are no Cypriot buyers due to lack of liquidity and the inability of banks to grant loans. External demand is also negative due to Cyprus’ defamation abroad after Eurogroup. Foreigners are waiting to see how the situation develops before making any investment”, he said.

Domestic sales

Domestic sales in May were down 57% compared with May last year, with sales falling in all districts.

Sales in both Nicosia and Famagusta fell 91% and sales in Limassol were down 71%, while those in Larnaca and Paphos fell 64% and 61% respectively.

Cyprus domestic property sales - May 2013

During the first five months of 2013 a total of 1,073 properties were sold to  domestic buyers compared with the 2,475 sold during the first five months of 2012; a fall of 57%.

Overseas sales

Despite the interest being shown by foreign investors, mainly Chinese and Russian, sales to overseas buyers fell in all districts, down 68% compared with May 2012.

Overseas sales fell 89% in Nicosia, 71% in Limassol and Larnaca, 67% in Famagusta and 57% in Paphos.

Cyprus overseas property sales - May 2013

During the first five months of 2013 a total of 439 properties were bought by overseas buyers compared with the 692 bought during the first five months of 2012; a fall of 37%.

3 COMMENTS

  1. Most buyers, internal and over seas, are now rightly wary of buying anything, no matter what the price, without clean title deeds. Only when this is rectified, and the matter of developers having loans on property already sold to unsuspecting clients is dealt with in a way that prevents fear of the repossession, by the banks, of property, will there be any upwards movement in the market.

    Until this government actually does something rather than issue platitudes and pander to the banks, property developers,and unions nothing will change.

  2. Due to political ‘duckin n divin’ the Crash has belatedly arrived and will be all the more severe for its 4-5 year delay. And with the underlying problems not really yet being addressed I can only see further sharp declines in volumes of sales and prices achieved. The so-called banking ‘idiosyncrasies ‘ have yet to start being addressed and when, Troika introduced, they finally begin to, we can expect further falls. Yes, Investors outside Cyprus will “cherry-pick’ the best assets, get them under better management and will have the resources to ride-out the declines in tourism and business services over a number of years – for it looks like the very High levels of global exposure of Cyprus and its severe economic problems got back in March will mean greater caution of those considering holidaying or investing here over the next few years.Meantime the currency remains ‘locked into’ the Euro and there is no simple way any more of devaluing and taking on the mantle of ‘bargain basement’ for a year or two to help ‘pump up the volumes’, get things moving forward again.

  3. “External demand is also negative due to Cyprus’ defamation abroad after Eurogroup”…

    Nothing to do with the fact that anyone who can read and stay awake can acquaint themselves, via the internet, with the now legendary scams going on here.

Comments are closed.