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CORRECTION: Property prices showing signs of stagnation

Changes in property prices in the second paragraph of the copy refer to the first half of 2019 in comparison to the second half of 2018. A corrected report follows.Ljubljana, 24 October (STA) - After three years of steep growth, real estate prices started to show signs of stagnation in the first half of 2019. Prices of flats are very close to the record figures seen in 2008, while prices of houses are lagging behind significantly, show data from the Mapping and Surveying Authority.

The average price for a second-hand flat in Slovenia in the first half of 2019 was EUR 1,810 per square metre, which was 1.7% more than in the second half of 2018.

Prices of flats have been growing fast since 2015, when a downward trend finally reverted after the 2008 economic and financial crisis.

Alone in the first half of 2018 the average price for a second-hand apartment increased by nearly 7%, the Mapping and Surveying Authority noted on Thursday.

But the second half of 2018 and the first half of 2019 saw the growth in prices slowing down to 2%, above all due to stagnation of prices in Ljubljana.

The average price for a second-hand apartment in Ljubljana was at EUR 2,780 per square metre between January and June, which was about 0.5% more than in the second half of 2018. The authority says that prices have stagnated in Ljubljana since the beginning of 2018.

A different trend was recorded on the coast, where prices of used flats are growing increasingly fast.

Average price for a second-hand flat on the coast, excluding the town of Koper, was at EUR 2,640, over 7% more than in the second half of 2018. This was also the highest growth rate recorded on the coast since 2015.

Data for Koper show that average price of second-hand apartments was at EUR 2,440, 4% more than in the second half of 2018. Prices of second-hand flats around Ljubljana were at EUR 2,180 (up 5%) and in Kranj they were at EUR 2.060 (up 7%).

Prices of houses have also been growing since 2015, albeit slower than prices of flats. Just like in flats, the biggest increase in prices was recorded in the first half of 2018 and growth of prices started slowing down at the beginning of 2019.

In the first half of the year, the average house sold in Slovenia was 169 square metres big, located on an average plot of 910 square metres, with an average price of EUR 127,000.

This compares to an average price of EUR 128,000 for an average house of 162 square metres located on an average plot of 980 square metres sold in the first half of 2018 and to an average of EUR 120,000 for an average house of 163 square metre on a 890 square metre plot sold in the second half of 2018.

In the first half of the year, prices of houses were highest in Ljubljana, costing EUR 286,000 on average, on the coast (excluding Koper) the average price for a house was EUR 264,000, while houses around Ljubljana cost EUR 193,000 on average.

Construction plots cost EUR 56 on average per square metre, which was about 10% less than in the second half of 2018 and some 3% less than in the first half of 2018.

The number of transactions in the first half of the year reached 17,100, which was 2% more than in the second half of 2018. Deals totalled to EUR 1.33 billion, up 11% over the second half of 2018.

Housing property accounted for 54% of all transactions. Transactions with flats amounted to EUR 432 million or 32% of total transactions, while sales of houses amounted to a total of EUR 290 million or 22% of the total transaction value.

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