Housing prices soar at $18K in Minsk
Having scanned through newspapers and called several ads, we learned that, for instance, a one-bedroom flat (34 sq. m.) on Majakouskaga Street costs $67,000. A 47-sq.m. two-bedroom apartment on Varanjanskaga Street costs $80,000. A three-bedroom apartment on Uljanauskaja Street can be purchased for $115,000.
Buyers complain that their earning opportunities cannot catch up with the housing price growth pace. Realtors only shrug their shoulders in respond. Diana, a staff with the Tetravita realtor agency, explains to the European Radio for Belarus:
“Buyers would definitely display discontent when sellers would raise the price at $5000. But they [the buyers] would eventually find the money, if they really wanted to acquire their property. We cannot force anyone to sell their apartment for the price you have already agreed on. Within this month, we have faced a rise of up to $18,000 in an average price,” she said.
Today, there is almost no space for direct sell-and-buy transactions. Usually, people tend to exchange their apartment for the other ones. This creates a chain reaction. If one seller raises the price, the same do the others in this chain. People apparently try to overprice their property, trying to forecast the development of the housing market.
In this situation, the number of offers continues to decline. Sellers look at the price growth and decide to wait out in order to make even more money in the future. The demand is growing. People, uncertain of their tomorrow, want to invest their money in the most profitable sector: real estate. So, they bought even the apartment which skyrocketed in price at $18,000.
Economist Aliaksandar Cubryk elucidates on the matter.
“Early this year we faced a rush for anything that could be bought, because everybody was concerned with the problems in Belarus-Russian relations and tried to invest money into real estate. This is the first factor, a macroeconomic one.
The second factor is that the share-holding construction has almost come to a halt. There was a presidential edict, saying that the share-holding construction could be conducted out of profit only, i.e. for private money.
Thirdly, the authorities in Minsk have raised the tariff for developers. Previously, the tariff amounted to one base rate per one million of expenditures. Currently, they are likely to raise it up to 15 base rates,” he said.
It appears that housing could continue to rise in value not only due to buyers’ policy, but also due to the government possibly introducing higher duties for developers.
Therefore, if you have a certain amount of money, do not hesitate to buy, according to realtors.
“Yes, it gets expensive. What can you do? The prices keep growing. Sellers want more and more. If you need your housing, you need to buy,” they advise.
The prices along with your plans about your own corner can easily change overnight, indeed.
Photo by www.idh.ru
