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Properties: 90% of the city's neighborhoods increased their sales prices, how much did a studio apartment skyrocket to? - La Nacion Propiedades
Source:
www.lanacion.com.ar
July 10, 2024
In a market that is slowly showing signs of recovery, studio apartments are once again showing a change in the cycle this month
Property prices rose in 90% of neighborhoods in June
The property world continues to show signs of recovery and the prices offered in the city 's neighbourhoods are witnesses to this change of cycle. This is indicated by the figures from the latest Zonaprop report, which show that the average price per square metre of listing in CABA has accumulated an increase of 4.3% so far this year.
In the city of Buenos Aires, this average value was US$2,269/m² in June, a price that shows a rise of 1.2% in the month, and registers the highest monthly increase since April 2018. Among these increases, brand new apartments are those that register the highest increases.
Puerto Madero is the neighborhood that defends the highest values in the marketJulian Bongiovanni
Looking at the bigger picture, the price is currently 5.5% above the low recorded in July 2023, but 19% below the high reached in March 2019.
Another factor that shows that the market is picking up is the average value of apartments. In this sense, the report recorded that studio apartments of 40 m² surpassed the barrier of US$100,000 and are located at an average asking price of US$100,280. Meanwhile, an average one-bedroom apartment of 50 m² is valued at US$120,356 and a two-bedrooms apartment of 70 m² reaches US$165,111.
Regarding the areas where the price increase occurred, it is worth highlighting that in June 90% of the neighborhoods registered a monthly price increase. If we look at the big picture , the data show that for a long time the increase did not reach all the neighborhoods of the city : during the first half of 2023, 23% of the neighborhoods registered price increases every month and since July of last year it was at 50%.
Another important fact is that the volume of apartments for sale that have been repriced downwards in the last six months has stopped falling and has remained stable at around 17% to 18% since January 2024. In addition, the average discount applied has slightly decreased in June and is now at 6.6%. Both factors reflect the change in the price trend recorded since July 2023.
Another variable that may explain the rise in prices in the neighborhoods lies in the increase in the cost of construction : “Building today costs 2.5 times more than what it cost in October 2020 (minimum of the series) and 11.6% above the 2012-2023 average,” the report states.
90% of the city's neighborhoods have accumulated an increase in pricesHernan Zenteno - The Nation/Hernan Zenteno
On the other hand, Lugano has the lowest prices on the market , with a value of 989 m². It is followed by Nueva Pompeya, with a value of US$1382/m², and Villa Riachuelo, with US$1433/m².
As for the neighborhoods , Lugano and La Boca are positioned as the best neighborhoods for investors looking for income with 6.8% the first and 5.9% the second.
www.buysellba.com
Source:
Propiedades: el 90% de los barrios de la ciudad aumentaron sus precios de venta, a cuánto se disparó un monoambiente
En un mercado que poco a poco muestra signos de recuperación, los monoambientes evidencian en este mes una vez más el cambio de ciclo
www.lanacion.com.ar
July 10, 2024
In a market that is slowly showing signs of recovery, studio apartments are once again showing a change in the cycle this month
Property prices rose in 90% of neighborhoods in June
The property world continues to show signs of recovery and the prices offered in the city 's neighbourhoods are witnesses to this change of cycle. This is indicated by the figures from the latest Zonaprop report, which show that the average price per square metre of listing in CABA has accumulated an increase of 4.3% so far this year.
In the city of Buenos Aires, this average value was US$2,269/m² in June, a price that shows a rise of 1.2% in the month, and registers the highest monthly increase since April 2018. Among these increases, brand new apartments are those that register the highest increases.
Puerto Madero is the neighborhood that defends the highest values in the marketJulian Bongiovanni
Looking at the bigger picture, the price is currently 5.5% above the low recorded in July 2023, but 19% below the high reached in March 2019.
Another factor that shows that the market is picking up is the average value of apartments. In this sense, the report recorded that studio apartments of 40 m² surpassed the barrier of US$100,000 and are located at an average asking price of US$100,280. Meanwhile, an average one-bedroom apartment of 50 m² is valued at US$120,356 and a two-bedrooms apartment of 70 m² reaches US$165,111.
Regarding the areas where the price increase occurred, it is worth highlighting that in June 90% of the neighborhoods registered a monthly price increase. If we look at the big picture , the data show that for a long time the increase did not reach all the neighborhoods of the city : during the first half of 2023, 23% of the neighborhoods registered price increases every month and since July of last year it was at 50%.
Another important fact is that the volume of apartments for sale that have been repriced downwards in the last six months has stopped falling and has remained stable at around 17% to 18% since January 2024. In addition, the average discount applied has slightly decreased in June and is now at 6.6%. Both factors reflect the change in the price trend recorded since July 2023.
Another variable that may explain the rise in prices in the neighborhoods lies in the increase in the cost of construction : “Building today costs 2.5 times more than what it cost in October 2020 (minimum of the series) and 11.6% above the 2012-2023 average,” the report states.
90% of the city's neighborhoods have accumulated an increase in pricesHernan Zenteno - The Nation/Hernan Zenteno
In which neighborhoods are the opportunities?
Regarding the ranking of neighborhoods by price, Puerto Madero, as always, is on the podium , with a value per square meter of US$5,931. It is followed by Palermo, with US$3,172 per m² and Belgrano with US$2,916 per m².On the other hand, Lugano has the lowest prices on the market , with a value of 989 m². It is followed by Nueva Pompeya, with a value of US$1382/m², and Villa Riachuelo, with US$1433/m².
Where is it best to invest in renting?
As for profitability, the rent/price ratio decreased and stood at 4.49% per year. Thus, 22.3 years of renting are needed to recover the investment, 10.1% more than what was required a year ago.As for the neighborhoods , Lugano and La Boca are positioned as the best neighborhoods for investors looking for income with 6.8% the first and 5.9% the second.
www.buysellba.com
