“It’s like a cold war,” Juhanson says. “Buyers expect a sharp decline in the secondary market, but sellers don’t see the reason.” Of course, prices have already fallen, but this remained in the general market situation. For something drastic to happen, sellers would have to be forced to sell the property quickly.
“At the moment, sellers are rather waiting for better times and are paying utility costs for vacant apartments,” says the intermediary.
The right price is important
According to Egon Juhanson the most difficult thing now is to sell, so to speak, average apartments. which do not directly require repair, but still require investment for an update. Furthermore, apartments of this type are the most numerous on offer and a further drop in prices is certainly expected for these.
However, apartments that need repairs and are renovated at the right price continue to do better on the secondary market. Both private individuals and investors who invest money are affected.
Speaking about prices, the Elum broker says that, for example, in the slums of Tallinn, two-room apartments for renovation costing 80,000 – 90,000 euros sell better, and renovated apartments of the same size cost 115,000 – 125,000 euros.
“The message of Euibor’s suspension has aroused more interest, but it is still too early to talk about a possible increase in the number of transactions. Purchases are still being achieved step by step,” concludes Juhanson.
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2024-01-29 11:10:00
expert-the-cold-war-continues-on-the-secondary-real-estate-market