It is, therefore, a curious phenomenon: despite the fall in activity, prices sought by owners increased by 9.4% in dollars in a year.
The statistics of the scribes of Buenos Aires clearly demonstrate two questions: there are less sales of real estate and, therefore, the prices agreed in the operations begin to fall. So far, pure economic rationality, bidding between supply and demand.
But there is another part of the real estate market where this logic is not working: Many owners, who are not encouraged to sell, refuse to validate lower prices, and even prefer to take the units off the sale and wait. Thus, another statistic shows a curious phenomenon: despite the fall in activity, prices sought by owners increased by 9.4% in dollars in a year.
The number appeared in a report prepared by the Department of Statistics and Census of the Government of Buenos Aires, based on the citations that appeared on Argenprop's website between July and September. Although the slowdown was beginning to be observed in relation to the previous quarter, high prices were still held on the supply side.
In the case of departments in a used environment, the largest increase was recorded: 12% in the third quarter against the value of 2017. The square meter in these units averaged $ 3,054.
This was the case of Belgrano ($ 3,760), Núñez ($ 3,737), Recoleta ($ 3,736), and Palermo ($ 3,721). ). Of course, all of them very far from the neighborhood that, with or without crisis, is still the most valued city: Puerto Madero, with $ 6,504 in average.
The case of Puerto Madero is undoubtedly the most impressive, almost from its origin. Although there are still many empty units, and rents are also charged in many cases in dollars, construction projects in the area do not stop and there is almost no free land to build.
In the case of the new departments in the rest of the city, the studio average was US $ 3,175, or 10.1% more than the previous year. The two-bedroom units averaged $ 2,254 per square foot in new buildings and $ 2,891 in used buildings, with increases of 9.1% and 12.2% in each case.
The least strong changes occurred in three-room units. The average was US $ 2,734 per m2 in the used ones, with a jump of 9%, and of 4.2% in the new units, which revolved around US $ 3,392 per m2.
The contrast between what is requested and what is signed is then very large. Why is it produced? On the one hand, the value of land influences, since there are many land owners available who have enough money to expect more lucrative times.
But one important factor is the refusal of owners to separate their units at lower prices. For many, the department is the main savings, and does not want to lose from devaluation and inflation. So in the real estate market say that many prefer to wait with high prices, move the unit to the rental market or withdraw it from the offer. They are clearly owners who do not feel like selling, according to Clarín.
The question is whether the decline that begins to be marked in the prices at which the operations are specified will begin to see also the side of what the owners request in general. In real estate consultancy Reporte, for example, they estimate that, for the market to gain strength again, prices should fall "by 20% or 30% more."
Discover the latest in digital economy, startups, fintech, corporate innovation and blockchain. CLICK HERE