Despite high interest rates, housing sales reached their highest monthly figure of the year in August with 134,155 units.
According to housing sales statistics announced by the Turkish Statistical Institute (TurkStat), the number of housing sales across the country increased by 9.9 percent in August compared to the same month last year, reaching 134,155.
While the highest housing sales were made in Istanbul, Ankara and Izmir, Hakkari, Ardahan and Bayburt were in the bottom three.
Despite the holiday season, high interest rates and housing access problems, August saw the highest figure of the year. This figure also stood out as the third highest August figure of all time.
Mortgaged house sales decreased by 17.1 percent on an annual basis in August, reaching 13,574. The share of mortgaged sales in total sales was 10.1 percent, the second highest rate of the year.
On the other hand, the number of housing sales in the first eight months of the year increased by 1.1 percent, reaching 806 thousand 317.
“THE INVESTOR WITH MONEY IN HAND TURNED TO HOUSING”
Hakan Şişik, Chairman of the Anatolian Side Construction Contractors Association (AYİDER), told AA that the sales figures showed that “investors with money and those in need are turning to housing.”
Şişik, who stated that although interest rates in housing have partially decreased, they are still very high, said, “It is a negative period for credit housing sales, but we can say it is an opportunity period for those with cash in hand. There is a dissolution in prices and the sector, which needs cash flow, is providing discounts to those with cash in hand. On the other hand, everyone now knows that interest rates will decrease after a while and housing prices will increase. Therefore, people want to take advantage of this opportunity period.”
Şişik stated that the campaigns implemented by branded housing projects also contributed to the high sales figures and said, “We think that this momentum in housing sales will continue. Sales will accelerate especially in the last quarter. For this reason, we think that sales in 2024 will be slightly higher than last year, in the 1.3 million unit range.”
“BUYERS WHO WANT TO MAKE OPPORTUNITY PURCHASES HAVE BECOME ACTIVE”
Istanbul Real Estate Brokers Club Business Cooperative (İstebKOOP) Board Chairman Ulvi Özcan also stated that while construction costs were increasing on the one hand, real housing prices were decreasing on the other hand, and said, “This situation has mobilized potential buyers who want to make an opportunity purchase, and rumors that interest rates will also decrease were especially reflected in the sales numbers.”
Özcan said that if interest rates really fall, this will also stimulate prices and demand will remain high.
Özcan stated that the annual housing need is around 850 thousand but the production is insufficient, and emphasized that the focus should be on the production of housing for sale and rent and that there should be a healthy housing policy.
“INVESTORS HAVE BECOME TURNED AGAIN TO REAL ESTATE WHOSE VALUE IS EXPECTED TO INCREASE IN THE FUTURE”
İsmail Özcan, Chairman of the Association of Real Estate Marketing and Sales Professionals (GAPAS), said that the constructions that were sold by large companies in previous years and were only completed in the past were also effective in the high sales figures.
Özcan, who stated that the discount campaigns implemented by project companies that do not want to lose customers who have cash and want to make a purchase and have stock on hand also reflected positively on the sales figures, said, “Also, the relative stability in investment instruments directed investors back to real estate, whose values are expected to increase in the near future. The removal of the limitation on rent increases also affected the investors.”
“LOAN INTERESTS MUST BE REDUCED TO A REASONABLE LEVEL FOR THE CONTINUITY OF INCREASE”
Özyurtlar Holding Board Chairman Tamer Özyurt also stated that the upward movement in housing sales figures started in the second half of the year, and that the increase experienced in July continued in August.
Özyurt, who emphasized that there was an increase in first-hand and second-hand housing sales last month, said, “On the other hand, the decrease in mortgaged housing sales and sales to foreigners continues. The fact that the high increase in housing prices has stabilized for a while has mobilized those who have money. However, in order for this increase to spread to a wider segment, prices should not enter an upward trend and loan interest rates should be reduced to a reasonable level and payment conveniences should be provided.”
Helmann Holding Board Chairman Selman Özgün also stated that those with cash in hand took action with the expectation that prices would increase, and said, “Indeed, the real declines in housing prices in recent months have mobilized the waiting investor. On the other hand, we also see that housing will never lose its appeal compared to alternative investment vehicles.”
Bahaş Holding CEO Abdüssamet Bahadır stated that sales figures are on the rise despite increasing costs, adverse economic conditions and supply not being able to meet demand.
Bahadır, who stated that demand for housing is still very strong, said, “However, due to the high interest rates in credit sales, we will not be able to see positive results for a while. The figures show that especially those with savings do not have as many expectations from alternative investment vehicles as before. The stagnation of the increase in housing prices has encouraged investment for some. They probably took action in order not to be affected by possible price increases.”
