An Estonian real estate agency is recommending sellers lower their prices by 5-10 percent as the housing market as a drop in transactions is giving buyers the advantage. New housing developments are trying to lure customers with extra offers.
It's currently a buyer's market, real estate company Uus Maa told Monday's "Aktuaalne kaamera". And sellers need to be prepared to lower their prices if they want to make a sale.
"On average, by 5 to 10 percent. Of course, it also depends on how much the apartment has been overpriced, how much the price should actually come down," said Uus Maa analyst Risto Vähi.
Prices have already fallen in the secondary market.
"For example, in the case of private apartments in average condition, we can see that when it comes to sales, they have even fallen by more than 20 percent. In the case of new developments, they are more likely to be offering discounts - a parking space and a storage room on top of the goods, kitchen furniture or, for example, utility bills that are paid for a certain period of time," Vähi said.
Kinnisvarakooli analyst Tõnu Toompark said prices have fallen this year.
"While in the first half of 2022 transactions took place at a level above the market value estimated by the expert, today transactions are still taking place below the estimated market value," he told AK.
Prices have also fallen for properties in new developments.
"If phase one was about offering "free" extras on top of goods - parking spaces, storage spaces, kitchen furniture, promising to withhold utility bills, now there is a bit more of a [downward] move in the price," said Toompark.
Merko Lahekalda new development sales manager Irina Piirmets said the company always offers additional extras to clients and this has not changed.
"We can certainly find a solution that suits the client's needs. Some of our apartments already come with a storage room [included in the price], in which case there is no need to buy a storage room. Some apartments come with a kitchen inside," said Piirmets.
Editor: Marko Tooming, Helen Wright