HARD DECLINE IN SECOND HAND HOUSES
In September, 142 thousand 390 houses were sold across Türkiye. Sales, which were 156 thousand 918 units in the same month last year, decreased by 14 thousand 528 units in one year. While new house sales increased by 3.9 percent to 51 thousand 519, second-hand house sales decreased by 15.3 percent to 90 thousand 871. Thus, approximately 64 out of every 100 houses sold were second-hand houses. The share of first-hand houses in total sales approached 36 percent. While there was a limited increase in the sales of newly built houses, there was a significant decrease in the sales of previously used houses. Although second-hand houses maintained their weight in total sales, they remained behind the level in the same month last year.
CREDIT SALES INCREASED
The number of houses purchased using bank loans increased by 5.1 percent and reached 23 thousand 397. Sales without credit decreased by 11.6 percent to 118 thousand 993. Thus, approximately 16 out of every 100 houses sold in September were purchased with a bank loan. A total of 1 million 92 thousand 919 houses were sold in the January-September period. This figure means a 7.2 percent decrease compared to the first nine months of last year. In the same period, sales made on credit increased by 24.7 percent. Although the number of home buyers with a loan increased, most of the sales took place without using a bank loan. Approximately 84 percent of the houses sold in September were non-credit transactions.
HOUSE PRICES ARE BEHIND INFLATION
According to Central Bank data, house prices increased by 1.2 percent in September compared to the previous month and by 22.3 percent compared to the same month last year. However, price increases could not keep up with inflation. The real value of houses against inflation decreased by 5.7 percent in the last year. In other words, the price of a house bought for 5 million liras last year and gaining as much value as the country average increased to approximately 6 million 115 thousand liras. However, this increase remained below the general price increase in the same period. The annual housing price increase in Istanbul was 26.8 percent, in Ankara 22 percent and in Izmir 21 percent. The lowest increase was seen in Edirne, Kırklareli and Tekirdağ regions with 15.3 percent. Thus, the person who sold his house for a higher amount than last year’s price did not make the same profit when inflation was taken into account.
ISTANBUL RANKS FIRST IN RENTS
The New Tenant Rental Index, which shows the prices of newly rented houses, increased by 2.1 percent monthly and 26.6 percent annually in September. New rents also decreased by 2.4 percent when inflation was taken into account. Istanbul ranked first in annual rent increase with 35.5 percent. New rents increased by 25.1 percent in Ankara and 23.7 percent in Izmir. For example, the rent of a house rented for 20 thousand liras last year reached approximately 25 thousand 320 liras, according to the average increase across Türkiye. However, these figures do not show the contract renewal increases of tenants still living in the same house, but the price change in newly rented houses. The annual increase in Istanbul was approximately 9 points higher than the Türkiye average. Thus, while house sales decreased in September, both house prices and new rents lagged behind inflation.
