PREDICTIONS by the Financial Mirror’s distinguished panel of seven economists who forecast that Cyprus would experience another “annus horribilis” in 2013 are becoming a reality.
Land Registry statistics released earlier today reveal that the number of properties sold in January fell by 53 per cent compared with January 2012. But this figure may be slightly mis-leading as in January 2012 there was a rush to deposit contracts of sale at Land Registry offices to benefit from the reduction in Property Transfer Fees. However, the number of property sales in January is the lowest monthly figure on record.
According to the statistics, the number of contracts of sale deposited at Land Registry offices throughout Cyprus stood at 375 compared with the 803 deposited in January 2012.
Sales were down in all areas. In percentage terms, Nicosia was hardest hit whith 136 fewer properties being sold (-75%) followed by Famagusta, where sales fell by 64 (-74%). Sales in Larnaca fell by 82 (-70%), while in Limassol and Paphos they fell by 115 (-55%) and 31 (-15%) respectively.
Speaking to Stockwatch, first vice chairman of the Real Estate Agents Association, Solomon Kourouklides noted that the lack of liquidity in the market and the difficulty of securing a bank loan contributed heavily to the decline in sales.
However, the interest of foreign investors, especially the Chinese, raises hopes for the recovery of the sector.
“According to estimates, sales to the Chinese in 2013 will reach 2,000 plots”, Mr Kourousides stressed.