In its Residential Property Price Index for the second quarter of 2016 the Central Bank reports that the general home price index fell 0.5%, with house prices falling by 0.6% and apartment prices falling by 0.2% compared to the previous quarter.
Famagusta saw the largest quarterly fall in the home price index (-2.9%) followed by Limassol (-0.8%) and Nicosia (-0.6%). However Larnaca and Paphos saw marginal increases in home prices of 0.4% and 0.1% respectively.
On an annual basis, the home price index fell 1.7% in the second quarter, with house prices falling by an average of 2.1% and apartment prices falling by an average of 0.4%.
In its report the Central Bank notes that it employs a different methodology to that of RICS (Cyprus) as it uses data collected from the commercial banks. (RICS, which uses a methodology developed by Reading University in the UK, reported that house prices rose 0.3% over the quarter and by 1.1% annually, while apartment prices rose 0.2% over the quarter and by 1.1% annually.)
But despite the figures reported today, the Central Bank remains optimistic about market trends. “The recent slight fall in the home price index reflects a stabilisation trend on the market and/or a reversal of negative trends.”
The Central Bank also referred to positive trends in the property sector including an increasing number of sales (up 31.6% compared to the same period last year and reaching levels similar to those in 2011) and increased sales of cement.