Hous­ing mar­ket con­tin­ues to suf­fer

Kathimerini English - - Focus - NIKOS ROUSSANOGLOU

Greece is once again in last po­si­tion in an in­ter­na­tional sur­vey on the growth of prop­erty prices, post­ing a 5.9 per­cent an­nual de­crease in the third quar­ter of the year, ac­cord­ing to the House­Price In­dex com­piled by The Econ­o­mist.

The Greek prop­erty mar­ket has had the worst per­for­mance among the 26 coun­tries mon­i­tored in the sur­vey, with Sin­ga­pore just above Greece with a 3.7 per­cent yearly de­cline in the July-Septem­ber pe­riod. Just five out of all the coun­tries mon­i­tored have posted a price de­cline.

No­tably, The Econ­o­mist com­mented that house prices in Greece are now un­der­val­ued by 17 per­cent in com­par­i­son with per capita dis­pos­able in­come. Still, this cal­cu­la­tion is based on a long-term av­er­age dis­pos­able in­come rate and not that of the last few years, which would have likely pro­duced the op­po­site re­sult, that houses are ac­tu­ally over­val­ued.

The re­sults of this sur­vey re­gard­ing Greece co­in­cide with the find­ings of other re­ports on the global course of house prices, such as that by Knight Frank, which placed the Greek mar­ket among the worst in the world – 53rd out of 56 states – while the Global Prop­erty Guide placed Greece third from bot­tom.

House prices recorded a yearly de­cline of 5.9 per­cent in the third quar­ter of 2015.

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