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The paradox of the real estate market that became an opportunity for those who want to move now - La Nacion Propiedades
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www.lanacion.com.ar
October 04, 2024
By Maria Josefina Lanzi
The real estate market is slowly recovering, but some properties are still "cheap" Shutterstock
In a context in which properties are gradually increasing in value, there are some units that still show opportunities . These are brand new apartments that, traditionally, were more expensive than those in condominiums, but this year they showed a setback . This was revealed by a report by Zonaprop, which explains that condominiums are only 0.3% below brand new ones , that is, almost at the same value, something that, in the words of many specialists in the sector, says that “the time to buy is now”.
Experts agree that the reason behind this paradox is the increasing cost of construction that was experienced at the beginning of 2024. Indeed, between December and March, data from Reporte Inmobiliario showed that the cost of construction in dollars had accumulated a growth of more than 80%.
“Two or three years ago, when the works that are currently being delivered began, the cost to build was less than half of what we have today,” explains Gabriela Bovalina Ladux, director of the Developments and Land division of LJ Ramos. “This means that today it is possible to sell at lower prices and still generate profit .”
Experts explain the fact that properties in the pit are at the same level as brand new ones by the increase in construction costs. Patricio Pidal
“The sharp increase in construction costs occurred at the beginning of the year, when mortgage credit lines had not yet come onto the market,” says economist Federico González Rouco, who recently published his book entitled El sueño de la casa propia (The Dream of Owning a Home), and explains that today there is more active demand, thanks to credit and money laundering, which “will drive up the value of new and used homes.”
“It is a great opportunity to buy brand new homes, prices are going to increase, so the time is now,” says Damián Tabakman, president of the Chamber of Urban Developers (CEDU), and assures that in the last year Argentina has become more expensive in dollars in different areas, but the value of properties has not yet risen at the same rate, so, at any moment, they will continue on that upward path. “That will make the entire real estate market rise, added to the fact that today there is credit demand,” adds Tabakman.
www.buysellba.com
He also explains that the investor who bought to make a profit by selling at a higher price after a while, “maybe today is willing to offer at a lower price than the rest of the market, because he built with a cheap dollar; on the other hand, the developer who wants to continue undertaking and has to face the current construction value, may sell at a higher price.”
Brokers agree that demand has been boosted by the resurgence of mortgage lending. “Given that more people can afford to buy a house, if before the owner counteroffered up to 10% of the value of a property, for fear of losing the possibility of selling it, today they are in a position to take a more active stance in the negotiation,” explains Santiago Mieres, from the real estate company of the same name .
Brokers say it is a great opportunity to buy brand new apartments, as the value of the properties will rise Patricio Pidal
The counteroffer gap is particularly relevant, since, in the real estate market, the reduction in negotiation percentages anticipates an upward cycle in the different price segments.
“The change in the counteroffer is very significant, because we are already below the historical 5% ,” says Fabián Achával, director of the real estate agency of the same name, and adds: “It does not mean that it is homogeneous in all price segments, now that percentage of negotiation is located mainly in the low average tickets and in studio apartments. In the most expensive or larger properties, this margin of negotiation widens and reaches approximately 7%. As the real estate market recovers, there will be a more general increase.”
Indeed, a report from Reporte Inmobiliario shows that the value of square meters continues to rise. The index of real m² (not the listing prices listed on real estate portals, but what is recorded from specific sales transactions) for the month of August 2024 increased by 2.8% compared to the previous month. If the comparison is made year-on-year, the data show that the general price per square meter for the sale of used apartments with one to three rooms grew by 10.3% in the City of Buenos Aires. The report details that studio apartments registered a closing price of US$2,041/m², US$1,979/m² for one-bedroom apartments, and US$1,869/m² for two-bedroom apartments.
www.buysellba.com
Source:
Las propiedades que no aumentaron de precio y son una oportunidad para los compradores
En un mercado en el que los inmuebles suben de valor, todavía hay opciones a “precios antiguos”
www.lanacion.com.ar
October 04, 2024
In a market where real estate prices are increasing, there are still options at “old prices”
By Maria Josefina Lanzi
The real estate market is slowly recovering, but some properties are still "cheap" Shutterstock
In a context in which properties are gradually increasing in value, there are some units that still show opportunities . These are brand new apartments that, traditionally, were more expensive than those in condominiums, but this year they showed a setback . This was revealed by a report by Zonaprop, which explains that condominiums are only 0.3% below brand new ones , that is, almost at the same value, something that, in the words of many specialists in the sector, says that “the time to buy is now”.
Experts agree that the reason behind this paradox is the increasing cost of construction that was experienced at the beginning of 2024. Indeed, between December and March, data from Reporte Inmobiliario showed that the cost of construction in dollars had accumulated a growth of more than 80%.
“Two or three years ago, when the works that are currently being delivered began, the cost to build was less than half of what we have today,” explains Gabriela Bovalina Ladux, director of the Developments and Land division of LJ Ramos. “This means that today it is possible to sell at lower prices and still generate profit .”
Experts explain the fact that properties in the pit are at the same level as brand new ones by the increase in construction costs. Patricio Pidal
“The sharp increase in construction costs occurred at the beginning of the year, when mortgage credit lines had not yet come onto the market,” says economist Federico González Rouco, who recently published his book entitled El sueño de la casa propia (The Dream of Owning a Home), and explains that today there is more active demand, thanks to credit and money laundering, which “will drive up the value of new and used homes.”
“It is a great opportunity to buy brand new homes, prices are going to increase, so the time is now,” says Damián Tabakman, president of the Chamber of Urban Developers (CEDU), and assures that in the last year Argentina has become more expensive in dollars in different areas, but the value of properties has not yet risen at the same rate, so, at any moment, they will continue on that upward path. “That will make the entire real estate market rise, added to the fact that today there is credit demand,” adds Tabakman.
www.buysellba.com
He also explains that the investor who bought to make a profit by selling at a higher price after a while, “maybe today is willing to offer at a lower price than the rest of the market, because he built with a cheap dollar; on the other hand, the developer who wants to continue undertaking and has to face the current construction value, may sell at a higher price.”
Change of cycle: another key that shows that values will continue to rise
In a market where properties are gradually increasing in value and demand has access to mortgage credit, visits to portals are increasing more and more. In this context, a key index reveals that the way of negotiating is changing: it is the counteroffer range, which in August stood at 4.52%, registering the lowest percentage since the University of CEMA and RE/MAX, together with Reporte Inmobiliario, carried out the series (2020) and showing a figure similar to that given in the time of UVA credits during the presidency of Mauricio Macri.Brokers agree that demand has been boosted by the resurgence of mortgage lending. “Given that more people can afford to buy a house, if before the owner counteroffered up to 10% of the value of a property, for fear of losing the possibility of selling it, today they are in a position to take a more active stance in the negotiation,” explains Santiago Mieres, from the real estate company of the same name .
Brokers say it is a great opportunity to buy brand new apartments, as the value of the properties will rise Patricio Pidal
The counteroffer gap is particularly relevant, since, in the real estate market, the reduction in negotiation percentages anticipates an upward cycle in the different price segments.
“The change in the counteroffer is very significant, because we are already below the historical 5% ,” says Fabián Achával, director of the real estate agency of the same name, and adds: “It does not mean that it is homogeneous in all price segments, now that percentage of negotiation is located mainly in the low average tickets and in studio apartments. In the most expensive or larger properties, this margin of negotiation widens and reaches approximately 7%. As the real estate market recovers, there will be a more general increase.”
Indeed, a report from Reporte Inmobiliario shows that the value of square meters continues to rise. The index of real m² (not the listing prices listed on real estate portals, but what is recorded from specific sales transactions) for the month of August 2024 increased by 2.8% compared to the previous month. If the comparison is made year-on-year, the data show that the general price per square meter for the sale of used apartments with one to three rooms grew by 10.3% in the City of Buenos Aires. The report details that studio apartments registered a closing price of US$2,041/m², US$1,979/m² for one-bedroom apartments, and US$1,869/m² for two-bedroom apartments.
www.buysellba.com
