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HomeProperty NewsJune property sales up 28 per cent

June property sales up 28 per cent

Cyprus property sales up 28 per cent in JuneTHE NUMBER of property sales in Cyprus during June rose 28 per cent compared to June 2016 according to official statistics published by the Department of Lands and Surveys earlier today.

This increase follows a 59% increase in May, a fall of 2% in April and a 16% increase in March

During June a total of 843 contracts for the sale of residential and commercial properties and land (building plots and fields) were deposited at Land Registry offices across Cyprus, compared with the 657 deposited in June 2016.

Of those 843 contracts, 635 (75%) were deposited by Cypriot purchasers and 208 (25%) were deposited by overseas purchasers.

Although the number of sales contracts in Larnaca fell by 20%, they rose in the remaining four districts.

Sales in Nicosia (the capital) rose 65% compared to June 2016, while sales in Limassol, Famagusta and Paphos rose 37%, 35% and 28% respectively.

Total Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 54
79
82
79 82 98 102 64 81 80 86 144
2017 72 73 79 80 118 162
Famagusta 2016 22
35 33
35
24 34
27 41 32 47 19 87
2017 21 19 40 29 38 46
Larnaca 2016 78
108 121
127
103 120
123 81 121 111 114 153
2017 102 100 113 69 119 96
Limassol 2016 92
179 197
166
145 222
220 129 195 270 249 432
2017 132 177 232 192 298 304
Paphos 2016 81
100 106
107
120 183
153 136 127 126 183 318
2017 96 87 162 136 183 235
Totals 2016 327
501 539
514
474 657
625 451 556 634 651 1,134
2017 423 456 626 506 756 843

During the first half of 2017, sales contracts have risen 20% compared to the first half of 2016.

(An unknown number of property sales contracts relate to ‘non-sale’ agreements such as loan restructurings, recoveries and debt-to-asset swaps agreed between the banks and defaulting borrowers. These contracts inflate the total figures above and the domestic sales figures below.)

Domestic property sales

Property sales to the domestic (Cypriot) in June rose 37% compared to June 2016 with sales rising in all districts with the exception of Larnaca, where sales fell 7%.

Famagusta lead the way with sales up 343% compared to June 2016, followed by Nicosia (+63%), Limassol (+40%) and Paphos (+25%).

Domestic Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 43
70
10
69 68 92 94 58 75 70 73 116
2017 63 69
71
62
103
150
Famagusta 2016 20 31 21
33
24 7 19 32 22 37 9 72
2017 20 17 24 23 27
31
Larnaca 2016 68 96 85
91
93 75 91 67 90 81 74 114
2017 77 80 85 49 76
70
Limassol 2016 68 158 145
122
126 162 156 101 142 202 196 307
2017 97 130 176 152 202
227
Paphos 2016 61 72 59
65
105 126 74 88 98 83 111 171
2017 73 47 82 93 88
157
Totals 2016 260 427 382
380
416
462
434 346 427 473 463 780
2017 330 343 438
379 496
636

During the first half of 2017, domestic have risen 13% compared to the same period last year reaching a total of 2,621.

Overseas property sales

Property sales to the overseas (non-Cypriot) market during June 2017 rose 7% compared to the same month last year with 208 contracts of sale deposited compared with 195 in June 2016.

While sales in Nicosia and Famagusta fell by 44% and 42% respectively, they rose 100% in Nicosia, 37% in Paphos and 28% in Limassol.

Overseas Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 11
9
10
10 14 6 8 6 6 10 13 28
2017 9
4
6
18 15 12
Famagusta 2016 2 4 12
2
0
27
8 9 10 10 10 15
2017 1 2 16 6 11 15
Larnaca 2016 10 12 36
36
10
45
32 14 31 30 40 39
2017 25 20 28 20 43 26
Limassol 2016 24 21 52
44
19
60
64 28 53 68 53 125
2017 35 47 56 40 96 77
Paphos 2016 20 28 47
42
15
57 79 48 29 43 72 147
2017 23 40 80 43 95 78
Totals 2016 67 74 157
134
58
195
191 105 129 161 188 354
2017 93 113 186 127 260 208

During the first half of 2017, property sales to the overseas market have risen 44% compared with the same period last year reaching a total of 208.

Cyprus Property Sale Contracts 2000 – 2017

Year Overseas Sales Domestic Sales Percentage
Overseas Sales
Total
Sales
2000 450 12,214 3.6% 12,664
2001 1,207 12,849 8.6% 14,056
2002 2,548 14,111 15.3% 16,659
2003 3,981 15,294 20.7% 19,275
2004 5,384 11,947 31.1% 17,331
2005 6,485 10,106 39.1% 16,591
2006 8,355 8,598 49.3% 16,953
2007 11,281 9,964 53.1% 21,245
2008 6,636 8,031 45.2% 14,667
2009 1,761 6,409 21.6% 8,170
2010 2,030 6,568 23.6% 8,598
2011 1,652 5,366 23.5% 7,018
2012 1,476 4,793 23.5% 6,269
2013 1,017 2,750 27.0% 3,767
2014 1,193 3,334 26.4% 4,527
2015 1,349 3,603 27.2% 4,952
2016
1,813 5,250 25.7% 7,063
2017 (Jun) 989 2,621 27.4% 3,610
Totals
59,607 143,808 29.3% 203,415

4 COMMENTS

  1. @sky – well I hear partly what you say – but I’d make two observations.

    One – the Republic is trying to ‘attract’ Chinese & Middle Eastern investment throwing in citizenship & passports et al. In these cases – they may not all be simple debt 2 asset swaps, but opportunities for fresh investors bringing in new money from outside (of course – leaving that in the hands of the original unscrupulous legacy management is not in all cases helping of course).

    Two – debt is a global problem & I’d need to see where you had sourced your data before being able to comment if Cypriot debt ratios were higher than anywhere else?

  2. Thanks for the update below – appreciated.

    My principle concern with restructuring banks balance sheets is all of the banks in the Republic following Hellenic Bank & selling off their debts.

    If the original lenders mis-sold loans – presumably this has to sorted out through the court system before they sell them on? Either that – or whoever the loans get transferred to will have to run the risk they will have bought bad debt that cannot be realised?

    Ed: I would expect that any organisation buying these bad loans will have checked to see whether any court actions were outstanding and that the bad loans were purchased at a discount as some of them will never be repaid.

  3. @richard
    For me it’s obvious…Cypriot households owe €1.2 BILLION which they can’t repay…(this amount is just the amount of NPLs, to which one has to add the future NPLs, and the loans made to people who can just barely pay them…).
    Cyprus private debt/GDP ratio is the highest in the WORLD.
    In a nutshell, this means the Cypriot people is BANKRUPTED.
    And though, Cypriots “transactions” still make 3/4 of the market…come on…this is mainly debt to assets swap…obvious..

  4. Thanks for sharing – but I feel you are right to call out the fact that an unknown number of these are tied up in loan restructuring or debt-asset swaps.

    Is there any way of ascertaining what percentage of the total amount is? It would help knowing if an actual recovery is progress, or whether it is just ‘fiscal chess’ with property.

    Ed: I did publish some information last month, but I don’t have any authoritative figures:

    We know that debt-to-asset swaps will be included in the numbers of domestic sales and although no official figures are available, the Greek language Phileleftheros newspaper published an article this morning (12 June), which reports:

    Of the 535 properties that were put to auction, a mere 20 have been sold.

    The Bank of Cyprus Real Estate Management Unit (REMU) took over property valued at €128 million during the first quarter of 2017 and at the 31st March 2017 had €1.4 billion worth of properties on its books.

    The banks are now looking at different solutions to meet increasing requirements of the supervisory authorities to consolidate their balance sheets.

Comments are closed.

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