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Used apartments: How much should you counteroffer today to avoid losing the property - La Nacion Propiedades
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Departamentos usados: hasta cuánto conviene contraofertar hoy para no perder la propiedad
Los precios por metro cuadrado de los departamentos tocaron piso ¿cuál es el margen de negociación que aceptan los propietarios?
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March 8, 2024
The prices per square meter of the apartments hit a floor. What is the negotiation margin that the owners accept?
By Candelaria Reinoso Taccone
Since mid-2023, the accumulated increase in the sales value per square meter was 1.9%
After four years of declines in property prices, values have stabilized since June last year and there are promising signs of recovery. The average price per square meter in the city of Buenos Aires in February stood at US$2,192 , which represents an increase of 0.3% compared to the previous month, according to the latest Zonaprop report. Since the middle of 2023, the accumulated increase was 1.9%, while in the year-on-year comparison, the price increase was 0.3% compared to February 2023.
In concrete terms, in February, a one-bedroom was priced at US$96,698 for sale , while a two-bedroom had a value of US$115,848 and a three-bedroom reached US$160,079. A relevant fact is that 67% of the City's neighborhoods register a monthly increase in their prices . Since July 2023, this indicator has grown and is above 50%.
The average price per square meter in the city of Buenos Aires in February had an increase of 0.3% compared to the previous month.
Puerto Madero leads the ranking of the most expensive neighborhoods, with a value of US$5,819/m², followed by Palermo (US$3,039/m²) and Belgrano (US$2,779/m²) . In contrast, Lugano, Nueva Pompeya and Villa Riachuelo are the most affordable neighborhoods, with prices of US$979/m², US$1,325/m² and US$1,451/m², respectively.
On the other hand, the volume of writings in January 2024 in the City was 2% higher than the same month in 2023 , a year that registered an increase of 20% in the volume of writings compared to 2022 and 21% compared to 2019. but 27% below 2018. The operations reached 1,882, according to the monthly survey carried out by the Buenos Aires College of Notaries. The total amount of transactions carried out increased by 244.4% in pesos, with $143,030,000.
Puerto Madero leads the ranking of the most expensive neighborhoods, with a value of US$5,819/m², followed by Palermo (US$3,039/m²) and Belgrano (US$2,779/m²).
“The January data does not reflect major variations: there is a slight increase , but they are not high percentages, and perhaps in some month there will be a slight interannual decrease. In any case, like every beginning of the year, some expectation is created in case some stimulus for the sector is generated in the macroeconomic order ,” says Jorge De Bártolo, president of the Buenos Aires College of Notaries.
According to some market experts, these numbers would confirm that a stabilization in the price per m² of property sales is becoming increasingly visible . “For now we cannot speak of recovery of concrete values, but we do see that we are reaching a floor,” says architect José Rozados, director of Real Estate Report.
It states that the data taken from the Zonaprop report is based on the offer values according to its base of published notices, that is, it shows the expectations with which a certain property is published, but it may be that the sale is not carried out. specific for that value , so it is necessary to also analyze the demand response. In any case, he assures: “We also noticed that in the last six months the price per m² stabilized and there was even a slight revaluation in some months . “We are reaching a point where the price is going to stabilize.”
The increase in the value of the square meter in well has a direct impact on the used property market.
Rozados also assures that there is no longer an attitude on the supply side of accepting sharp drops in value : “Given a price that is proposed to the owner and that he does not consider convenient, he will not be willing to sell the property for that value, because there is a certain expectation that this trend of falling prices can stop, stabilize and then grow,” he points out.
“Previously, counteroffers of up to 20% less than the originally offered value were accepted. Today, as the owner negotiates less (he does not accept counteroffers much below the price he offers), it is considered that the price has increased ,” shared Diego Cazes, general director of LJ Ramos. While also consulted by LA NACION , Martín Boquete, director of Toribio Achával, shares his view: “In addition to the fact that the publication prices increased by the percentages indicated by Zonaprop, the negotiation margin decreased . That is to say, the difference between the publication price and the closing price is smaller , which means that prices rose even more.” In other words, homeowners do not accept very low counteroffers from buyers.
According to the latest ROI report with data for all of 2023 (the survey of real estate operations), the average negotiation percentage with respect to the last published value was 8%, falling 0.5 percentage points compared to 2022 . This means that haggling is slowly converging to 2019 values (7.4%) , although it is still far from the historical average of 5%. If you take only the last quarter of last year, the trading percentage was 7.7% compared to the last published value, showing a drop of 1.3 percentage points compared to the last quarter of 2022.
Stops the fall in the price of the square meter
There are fewer options when purchasing property compared to a year ago.
Soledad Balayan, director of Maure Propiedades, also shares the view that we can speak of price stability and that the fall has stopped : “According to the latest ROI report, the closing price of properties in the residential sector used in the city of Buenos Aire stopped falling. Regarding 2022, a zero (0%) year-on-year variation rate in the price per square meter of real estate was observed. Since the ROI exists, it is the first year where prices do not fall (2019),” Balayan mentions.
“Although not all products reached their minimum level, we are observing greater stability in prices and a decrease in sales supply , which marks a significant change with respect to the record supply that we were experiencing,” explains the real estate expert. This means that there are now fewer options when purchasing property compared to a year ago . “In addition, it is important to take into account the last months after the repeal of the Rental Law , since this measure is also having an effect on the purchase and sale market, reducing the supply of sales and increasing the supply of rentals ,” adds Balayan.
Experts agree that today the used property market is an excellent investment alternative for living or renting.
“The reality is that today there is considerable movement in the used property market ,” says Daniel Salaya Romera, owner of the real estate company of the same name. “In February, the cost of construction saw an increase of approximately 30%, while the value of the dollar decreased by 20%. This situation caused an increase in the value of the square meter in the well , which has a direct impact on the used property market,” explains Salaya Romera. He assures that there is currently a trend of urgency among buyers to acquire used properties that have not experienced an increase in value and that are at attractive prices . “It is still possible to find small apartments with prices of US$70,000, US$80,000 and US$90,000,” adds the expert.
For his part, Javier Igarzabal, director of DIC Propiedades, points out that, regarding sales prices, “we noticed that they do begin to bounce up in some segments, but we have to see if they sell. ” Although he recognizes that used property has stable prices, he also believes that “you have to be prudent with appraisals and advice because there is no saving capacity in people.”
Like Salaya Romera, Igarzabal points out that today the used property market is an excellent investment alternative to live or rent . “You can take advantage of the opportunity to buy your future home at a time of historically low values and wait for the rebound. Another possibility is to make rental contracts for, for example, two years and quarterly updates. “Many investors are thinking about buying and offering these properties for rent, while they wait for it to be sold, something that until December 2023 under current law was unthinkable,” she argues.
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