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House Prices Portugal. Which Direction in 2010?

Discussion forum for expats moving to or living in Portugal.
Subforums: Property for Sale/Rent, 2nd Hand Items for Sale/Wanted, Job Vacancies/Employment Wanted

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House Prices Portugal. Which Direction in 2010?

Post Posted: Fri Sep 24, 2010 8:55 am

Down or Up? Or Ups and Downs!

www.globalpropertyguid...e/Portugal

Portugal’s housing market recovery falters in Q2 2010

Concerns over Portugal’s deficit and stability halted the recovery of Portugal’s housing market. After four consecutive quarterly price increases, the houses prices slipped in Q2 2010. The average price of houses in Portugal fell by 0.3% q-o-q, according to data from Instituto Nacional de Estatistica (INE) based on Bank Evaluation of Housing.

Compared to a year earlier, the average price in Q2 2010 was up by 2.9%. This was lower than the 3.6% y-o-y price increase to Q1 2010. Although this was better compared with the worst of the house price crisis which saw house prices fall by an average of 6% y-o-y from Q2 2008 to Q1 2009.

Are they giving them away yet?

 

mycetes
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Fri Sep 24, 2010 9:07 am

I have come across and had told countless times that Portuguese owners of property fix a selling price in their minds and will not deviate from it. They would rather wait 3 years to sell it, than reduce their price. Have any forum members experienced this? Perhaps Richard at Azulproperties is in the best position to comment.

 

scallywag
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Fri Sep 24, 2010 10:05 am

Hi,
As with all statistics, care must be taken to understand exactly what is being discussed.
This particular statistic is based on bank evaluation of properties, not actual sale price. There are a number of problems with this:
-Any property bought without a mortgage is excluded from these figures
-The bank valuation does not bear any relation to the actual sale price. In many cases, banks are reducing valuations, thus reducing LTV´s and their risk
-As with all the statistics used here, this is based on a price per m2 of built area, which ignores the land included with the property. This distorts the statistics.

The other statistic often used is the price per m2 of sold properties (i.e. value declared at escritura). In theory, this is more accurate, but again does not take in to account the distortion of information as noted above.

So, with regard to the quoted statistics, the headline should really say "Bank valuations of properties decrease" not "house prices decrease".

The report also does not touch on the different sectors of the market, which are driven by supply and demand. As ever, when there is a shortage of supply prices will remain stronger, even in a weak market. In my experience, the weakest parts of the market here are those with over supply problems (condominiums) and those that only have niche appeal.

It is very hard to make accurate assumptions, as we are dealing with a market that is influenced by many external factors.

Talking to colleagues, the general consensus is that prices have remained under pressure this year, and have generally stayed flat. There are deals to be done, but these depend on the need of the vendor to sell, and their timescale.


_________________

Richard
www.azul-properties.com
www.algarve-commercial.com

 

azulproperties
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Fri Sep 24, 2010 4:58 pm

A local estate agent has now dropped his commision to 3% from 5%.


_________________

seeuktv.iptv.deals/

www.vale-da-telha.eu

 

BERGY
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Fri Sep 24, 2010 6:31 pm

my mother has just sold her villa, three years ago they would have fetched 450, when it went up for sale 5 months ago they asked 399, today it was sold for 280 less 16 for real estate commission..from 450 to just over 250!!

 

scruffts2006
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Sat Sep 25, 2010 1:33 am

I know, personally, of two estate agents who have closed their business within the past six months. Others have downsized.

I have bought three properties in the past eighteen months - all direct from their respective vendors. Only time will tell if I have made a good move, but the two in which I do not live in are earning an income for me. I know this area well and was choosy and, I hope, clever with where I bought.

Take your time, shop around. If you are a cash buyer, there are bargains to be found, but only if you are clear on what you expect that property to provide for you - be it an income or a comfortable home.

You can never spend too long doing your research and homework.

The properties that are for sale now, are not going to disappear into the autumn skies. They will be for sale for a while yet.

 

Catx
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Re: House Prices Portugal. Which Direction in 2010?

Post Posted: Sat Sep 25, 2010 12:10 pm

- scruffts2006

my mother has just sold her villa, three years ago they would have fetched 450, when it went up for sale 5 months ago they asked 399, today it was sold for 280 less 16 for real estate commission..from 450 to just over 250!!



That's quite a drop! Shocked Where was the property located?

On a more general note do you think Estate Agents inflate property prices to allow for offers?

Kind regards
Carole

 

Carole
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