Property Prices in the South fall by 30% : Trend may hit North Cyprus

walkerscott


Joined: 13/08/2009
Posts: 901

Message Posted:
16/08/2010 07:19

During the last 5 years property prices in the North have risen quite quickly in line with what was happening in the south of the island, but now prices and confidence in the south have fallen significantly, it is perhaps a sign for what is to come here in the north ...



a 30% fall over 3 years is a significant drop!





http://www.news.cyprus-property-buyers.com/2010/08/15/time-to-buy-in-cyprus-as-house-prices-fall/id=005480?utm_source=feedburner&utm_medium=email&utm_campaign=Feed:+CyprusPropertyNewsStories+(Cyprus+Property+News+Magazine)

kavenkoy


Joined: 10/04/2008
Posts: 1787

Message Posted:
16/08/2010 07:24

south prices have been overinflated for several years .



north prices are very much inline with reality i would think .



kav

ang1706


Joined: 28/01/2009
Posts: 570

Message Posted:
16/08/2010 08:13

Good thread,



The house prices across the EU have been hit hard and as an example Spain now can almost not give houses away as over developed especially on the Costas. Its only taken a time to blow across from the other end of the MED.

Hungary, Greece, Italy to mention a few are also suffering in a downturn in house prices.



Affecting us here, I hate to say that it is bound to happen and as the Governor of the Bank of England said last week- expect a choppy ride!!!



Even in UK, one set of figures say house prices rising slowly only to be contradicted next day by another!!

From what I can gather the market is very much a Buyers Market and lots of bargains to be had as so many people need to sell!! (Sound familiar in TRNC haha!!)



I do think though that survive the storm of a couple of years and then reap the benefits of having property in TRNC.

tamand


Joined: 23/07/2009
Posts: 240

Message Posted:
16/08/2010 08:42

Hello Ang

I agree with you last bit, that there will be a knock on effect here in TRNC and if folks can afford to batten down and wait it out the end result will be good in years to come, but many have put everything into buying here five years ago in the hope of turning a quick profit and now they are comming unstuck, some even having to try and sell their house in England to pay back the bank where they borrowed the money from in the first place, but hey thats the gamble they took, i feel for the ones who bought to retire and relax in the later years of their lives, and now find they cant survive, it makes me so sad

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
16/08/2010 10:17

Walkerscott......I understand your point regarding North/South comparisons ,but I have seen no evidence of prices in the North rising in the past 5 years.

We bought our property in TRNC approx 5 years ago , and at best prices have remained pretty static,but on the larger mass market development I would argue that prices have actually fallen !



Remember there is a difference between the asking price ie what the developers would like to achieve,and the selling price ie what people are prepared to pay.

zerochlor


Joined: 03/04/2009
Posts: 4024

Message Posted:
16/08/2010 10:22

ohh goodie.



sounds like it could be a good time to start looking to snap up a bargain if this is the case!

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
16/08/2010 10:32

Zerochlor....it depends what your definition of a bargain is.



A half price villa that you may never "own" is still not a bargain in my book !

walkerscott


Joined: 13/08/2009
Posts: 901

Message Posted:
16/08/2010 10:45

Cronos,

I agree with you there. It is the "asking prices" which have risen considerably.

paddywack


Joined: 04/05/2009
Posts: 959

Message Posted:
16/08/2010 11:00

There is a lot of difference between asking price and actual sellong price

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
16/08/2010 11:26

The prices that will drop the most are the ones that are / were overpriced in the first place!

zerochlor


Joined: 03/04/2009
Posts: 4024

Message Posted:
16/08/2010 11:26

message7 cronos.



quite true i agree.



But a half price villa with a kochan is a good bargain when you buy the property through your company and get the kochan more or else right away.

Still plenty of bargains out here,so many ex pats moving back to UK and some very desparate to sell,a buyers market at present,even some builders are offering some huge discounts,but i would never buy offplan.



This market is going to take many years to sort its self out,give it another 5 years and we might be half way there,or am i dreaming!!

fiendishpaul


Joined: 18/05/2008
Posts: 1720

Message Posted:
16/08/2010 11:27

In the past few months I have received a number of e-mails from estate agents selling properties that have been discounted very heavily from original asking price. E.g. Villa in Alsancak previous price £170k, now asking £120k. Admittedly, this may be a 'distressed' sale with the buyer just wanting to get rid of the property at any cost, but I would agree with Cronos in that house prices are only going one way at the moment.......and it aint up !!



Regards



Paul

expatlady


Joined: 11/07/2010
Posts: 52

Message Posted:
16/08/2010 13:08

msg 12

Yes; I have had the same experience. One property I looked at earlier this year had its asking price reduced with 30% three months ago, ...but it is still on the marked.



There is definitely no need to hurry, if you are in the buyers marked.

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
16/08/2010 13:17

A friend of mine was so desperate to get away from here she took a 60,000 pounds drop on her house. She did not to leave it sat empty here and snapped the buyers hand off.

rdsteve


Joined: 01/03/2009
Posts: 187

Message Posted:
16/08/2010 14:28

Another misleading post for people who don't read the link.

It actually says property prices have fallen 20 to 30% in some areas in the South How Walkerscot puts it all prices have fell 30% which is not true. Report the facts not speculation.



Steve

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
16/08/2010 14:58

mess 7 i would feel like that if i had sold up, supposed you would feel sick if it took off here

Dusterbruce


Joined: 03/08/2007
Posts: 1125

Message Posted:
16/08/2010 15:07

Is property in the North worth anything at the moment?

catalkoykid


Joined: 15/02/2009
Posts: 1190

Message Posted:
16/08/2010 15:22

they are still selling, i no of 2 this week and got good money,well money back

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
16/08/2010 16:29

The political situation leaves North Cyprus outside the European trend. In general prices here are very low and definitley so in comparison with the South.

If all the speculation/promises are true, whether we end up with a re-unification deal or remain as we are but with direct trade (which I think will quickly lead to direct flights), then I think prices here will start to rise to catch up with the South. The degree at which they rise will depend on the degree of recognition from Europe.

If the TRNC gains recognition as a separate state, or even becomes part of Turkey, then I think prices will approximately double within a couple of years because there will be no essential difference between the North and South.

But then what do I know!

fiendishpaul


Joined: 18/05/2008
Posts: 1720

Message Posted:
16/08/2010 17:11

Jovial John



House prices in mainland Turkey are very similar to those in the TRNC, I doubt that recognition as a separate state will make much difference.



But then what do I know



Paul

cronos


Joined: 26/10/2008
Posts: 2093

Message Posted:
16/08/2010 17:25

fiendishpaul...msg 20



I was just about to say the same thing myself.

Property prices on the Turkish mainland are very similar to TRNC so I don't see how recognition or settlement would make much difference.



I certainly wish we had chosen Turkey in the first place for our holiday home.

At the time we could have bought a nice villa over there for the price we paid for our Pre-74 apartment ,and we would have had deeds in our name !



Hindsight is a wonderful thing !

Jovial_John


Joined: 31/01/2009
Posts: 1024

Message Posted:
16/08/2010 18:47

Property prices in South Cyprus are higher than in mainland Greece. I think it is the price of property in South Cyprus that will dictate any price increase in the North - not Turkey.



But what do I know!

swannee7


Joined: 21/08/2009
Posts: 394

Message Posted:
16/08/2010 20:42

Jovial John (22). The south of the island has suffered a real downturn economically and this has, of course, had a knock-on effect on property prices. Seems to have been one of the penalties of being in the EU and with the Euro having taken a bashing of late. The south depends almost 100% on tourism and tourists purchasing power, including buying of property. Over past 2 years numbers (tourists) have dropped dramatically and are still going down. NC remains in an economically different climate, cocooned almost from the rest of Europe and of course helped along by the Mother Country. I honestly don't think comparisons of any sort can be made on this issue. Potential buyers just don't have the money at the moment and that leads to the 'domino effect', when prices tumble. Try and ride out the storm.

Stonehousepub


Joined: 21/05/2009
Posts: 755

Message Posted:
16/08/2010 20:48

Property in NC is overpriced, this is one of the reasons why sales are so low, I think a slight drop in prices will kick start sales. I know of many people looking for realisticly priced properties, if people genuinly want to sell their properties then i'm afraid they have to consider taking a 20-30 % loss. This of course is extremly sad but cluttering this non existant property market with over priced and under built properties is not helping anyone...

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
16/08/2010 20:52

Message 24. A 20-30% loss on what - the original purchase price or the price you have it up for sale for?

Stonehousepub


Joined: 21/05/2009
Posts: 755

Message Posted:
16/08/2010 20:55

mess 25



The advertised selling price

No1Doyen


Joined: 04/07/2008
Posts: 16617

Message Posted:
16/08/2010 21:00

Thanks for coming back.

Bradus


Joined: 25/02/2007
Posts: 2641

Message Posted:
16/08/2010 21:50

The property market is definitely in decline. The builders know it and so do the Estate Agents. This has nothing to do with what is happening in Turkey or the South .It has more to do with the uncertainty surrounding buying in the TRNC and how unsafe it can be.



Prices will fall unless confidence can be restored in the property market. Unfortunately it looks like the new laws will fail to do this.



http://www.hurriyetdailynews.com/n.php?msg=commentsaved&n=north-cyprus-property-sales-stagnate-2010-07-29

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
17/08/2010 03:43

Property prices in the south will come down to the norths level,they have to,what with prices in Turkey being low and the huge discounts on Spanish property.

There are literally millions of unsold properties in the Med countries and in the present economic situation ,given the choice of investing in holiday homes or keeping your money in the bank ,its a no brainer.

If I might lose my job tomorrow or if my business might fail,I dont want to have to wait a year to sell my house in order to get funds.

Property investment will be restricted to the likes of Istanbul ,where good rentals can be had from an increasing young workforce needing decent housing,similar can be said of Spain,the holiday home Market has crashed there, but property in Barcelona is at a premium.

kavenkoy


Joined: 10/04/2008
Posts: 1787

Message Posted:
17/08/2010 05:18

if you compare "property crahes " dubai has the biggest drop .



there are more unsold ,stopped or empty developments than anywhere .last week i saw a report on all the cars that have been locked up as people just walk away from financial disasters.



but somebodys missfortune is another persons gain



kav

fiendishpaul


Joined: 18/05/2008
Posts: 1720

Message Posted:
17/08/2010 07:47

Girne 29

Re msg 29



Sorry, but I disagree.



House prices will fall in the South. They have pretty much doubled in the past 4 years so a drop in prices is badly needed to kick start the market. That said, I don't believe that they will come down to NC levels because, like it or not, the RoC is part of the EU and buying there NOW, as opposed to buying pre EU accession does offer some form of legal protection. You have none of that protection here in NC and as a result, confidence in the NC property market has taken a serious battering (understandably). Until buyers have the confidence that they can buy with adequate legal protection here in NC then I am afraid that the industry will remain on the bones of its' a**e for years to come.



Just my opinion of course.



Paul

rdsteve


Joined: 01/03/2009
Posts: 187

Message Posted:
17/08/2010 09:35

Paul

I think your opinion is not far off from being right. With the ROC being in the EU there is a lot more support if things do go wrong. Yes we all know about title deeds not forthcoming but that said it is getting better, and at present you can get a very good deal on a property i the South if you have the cash available. The prices advertised are not the price you pay up to 25% off have been quoted. You don't here horror stories like the Kulaksiz 5, Gary Robb and Afikins Banks 85% interest rates. The banks in the South are regulated again because of the EU. It is more expensive in the South but least if things go wrong you have got more chance of re-dress against the problem. The North property market will be in the doldrums for years to come unless there is a settlement which seems highly unlikely. Those who bought there property have bought them cheap but have very little chance of selling them at the present time but who knows what will happen in the next 10 years.

Steve