PROPERTY sales fell for the 16th consecutive month in November and were at their lowest level since January 2009, when the market collapsed.
Figures released by the Department of Lands and Surveys yesterday show that the number of contracts for the sale of property deposited at Land Registry offices throughout Cyprus during November fell 35% to 485 compared with the 741 contracts deposited in November 2010.
This is the largest decrease this year and one of the largest falls in recent times. Property sales in November fell in all districts compared with last year.
Hardest hit was Nicosia where sales slumped 55%, followed by Larnaca (-32%), Famagusta (-29%), Limassol (-24%) and Paphos (-15%).
Sales of real estate last month were probably hampered by the dithering over the implementation of the temporary abolition/reduction in Transfer Fees as buyers waited to see if they would benefit from the changes.
Speaking to Stockwatch, property valuer Polys Kourousides said that the fall in sales is due to uncertainty in the property market, the lack of liquidity and difficulties in accessing loans. “However, even if the access to loans becomes easier, investments are not made due to the high cost of money”, he added.
As for the performance of the market over the next few months, Mr Kourousides said that the decline will continue until the problems are solved and the banks start granting loans.
According to Iros Miltiadous, Business Development Director of Aristo Developers, “Unfortunately, the market is unpredictable and may deteriorate further or improve at any time”.
Mr Kourousides said property prices will be reduced further to enable people to buy.
During the first eleven months of this year, sales are down by nearly a fifth compared with 2010.
