THE CYPRUS Central Bank’s Residential Property Price Index for Q2 2012 reports that their index fell to 90.3; a fall of 2% compared with Q1 2012.
On a quarterly basis, house prices fell by 2.2% and apartment prices fell by 1.6% across the island. On an annual basis house prices have fallen 6.5% (their largest annual fall for two years), while apartment prices have fallen by 5.1%.
Over the quarter, Famagusta was the hardest hit area with house and apartment prices falling by 4.4% and 3.7% respectively. Paphos fared best, with house prices falling 0.5% and apartment prices falling 0.4%.
Over the year, Famagusta is again the hardest hit area, with house prices falling 12.7% and apartment prices falling 8.2%. Limassol saw the lowest fall in apartment prices at -3.6% and Nicosia saw the lowest fall in house prices at -4.6%.
The annual price falls of residential properties in the districts of Famagusta and Larnaca at 11% and 8% respectively, were the highest on record.
The Central Bank considers that the price falls, which started in Q3 2008, will continue in the short-term.
Further reading
Residential Property Price Index by the Central Bank of Cyprus for Q2 2012 (English)
‘The Central Bank considers that the price falls, which started in Q3 2008, will continue’ (to nosedive!) ‘ in the short-term.’
And continue to fall until:
– the government faces up to the absolute Mess they are making of ‘managing’ the Cyprus economy: this Government won’t, they seem to ‘duck and dive’, leaderless, avoiding the realities of the Troika’s responses, including urgent remedying of the outrageously flawed Title Deed, bank double-lendings, developer-lawyer cultures/practices that still prevail
– the government agrees to and adopts the Troikas requirements re resolution of the Title Deeds fiascos by 31st October, 2013 as recommended
– the massive backlog of new, unsold and under-construction properties, many of them of questionable quality, some decidedly ‘dodgy’!, is cleared
– in view of all the above, Cyprus exits the Euro, with Greece and probably others, and effectively devalues the New Cyprus Pound by around 25-30%, making it once again an attractive proposition, builds a platform on which to build a new, more stable future
So, Long-Term? YES!
Unless: the management of the Med-gas opportunities is well planned, well executed, and the massive and complex projects are brought in ‘on-time’, 5-7 years, realistically, bringing – potentially massive – new Wealth to this tiny little country, sufficient, if realised for it to become a ‘new Norway’ maybe by the early 2020s??
For those of us still around here in 2022 – I hope to be one, I LIKE the place – it may perhaps be worth a) the pain and b) the wait ?
I don’t think this is the worst of it once Greece defaults prices will fall like an avalanche soon be worthless
I would like to see chart 3 – House and apartment price indices, annual change %, using a datum of 1974 Q1 at 0, as against 2007 Q1 @ +20. If we worked from that then we may see the ridiculously overinflated prices people have been induced to pay against where we are today. I appreciate we have to start from somewhere and that space is limited but the true nature of the problem is not wholly displayed or explained in the reports – there again I suppose it is serving the purpose for which it is designed, a snapshot of recent (adjusted) trend.
Surely the last sentence should read: The Central Bank considers that the price falls, which started in Q3 2008, will continue in the short-term AND the long-term.