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Property Prices Still Falling

Ljubljana, 14 August (STA) - The prices if real estate in Slovenia continued to fall in the second quarter of the year, a trend driven by declining purchasing power and the weak economy, according to the quarterly real estate report by the Surveying and Mapping Authority.

Apartment prices averaged EUR 1,680 per m2 countrywide, down almost 6% year-on-year. Prices have been falling in all major cities tracked for the survey, though the differences are significant.

In the capital Ljubljana prices averaged EUR 2,391 per m2, down over 5% from a year ago. The most expensive apartments are on the coast, where sellers got an average of EUR 2,481 per m2, 4% less than a year ago.

One- and two-family homes, meanwhile, were more expensive, costing an average of EUR 125,016, up from EUR 122,505 in the year before. However, the number of transactions is so small prices swing wildly even in quarterly comparisons.

Prices of building land also continue to decline, which the reports says is a logical consequence of the bust in the construction industry and meagre demand. Investors paid EUR 58 on average per m2 of building land, down from EUR 61 a year ago.

The prices vary depending on region, with building land costing EUR 201 per m2 in Ljubljana (down a fifth compared to a year ago), EUR 100 on the coast, EUR 123 in Maribor and as little as EUR 37 in and around Celje.

Only commercial real estate is bucking the trend, with prices rising compared to the first quarter though still slightly below the level recorded last year.

With prices falling, real estate is becoming more attractive and turnover has been increasing, according to the report. The number of transactions rose 5% year-on-year in Ljubljana and edged higher in the majority of other regions.

The Surveying and Mapping Authority tracks property prices based on a representative sample of actual transactions.

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