A hike in house prices which have recently seen price increases exceeding 100 percent, also came after 3 separate housing packages announced by President ERDOGAN. After the packages, the houses for sale were increased by 5-20 percent. Although interest rates have fallen, monthly loan installments start from TL 14 thousand.
After the 3 separate packages announced by President Recep Tayyip Erdogan on house sales last night, price increases in house ads for sale drew attention.
Representatives of the sector said that after Erdogan's statements, house prices on various web sites had raised in the range of 5 percent to 20 percent.
A house worth TL 1.4 million was increased to TL 1.6 million after the announcement, while a house worth TL 1.7 million was increased to TL 2 million before the packages were announced.
“IT WILL LASTS FOR A WEEK”
A consultant of a well-known real estate firm expressed no surprise at this situation in his assessment, and price increases would last for a week.
The same consultant said, "You may think that the market had priced Erdogan's statements. Those who have not heard of the packages described will also start pricing today. This situation will continue throughout this week, all houses with a price of up to TL 5 million will be affected.”
Another real estate consultant, in his assessment, pointed out that the recent price increases had been expected. This consultant said, "Improvements in financing conditions benefit the seller's side, especially in markets where there is insufficient supply. We also saw this in the previous rate cut.”
The consultant said that the reduction of interest rates in the market from 1.29 to 0.99 would have the effect of increasing house prices by 15 percent, “As long as this does not change the installment amount, it's okay, but it will change the down payment. There may be a disadvantage of the buyer there.”
Recalling that 700-800 thousand houses should be produced in Turkey every year to meet the demand, the consultant continued as follows:
“It is extremely positive that 20 billion pounds of resources have been allocated for the completion of construction projects. While the need for new housing is 700-800 thousand, a total of 50-60 thousand new housing units will be provided with this package, but it will be a good start. Contractors' own resources were melted down due to cost increases. They did not have the power to continue new projects. This way, they will have new power to continue.”
