Tehran Home Sales Fall as Prices Soar
EghtesadOnline: The Central Bank of Iran on Tuesday released its latest data concerning Tehran's housing market, indicating that the volume of home deals has significantly declined as prices have jumped for the third month in a row.
According to a report published on CBI's website, the number of home deals registered in Tehran during the fifth month of the current fiscal year that ended on Aug. 22 stood at 12,006, which was lower by 11.2% and 33.2% when compared to the month before and the same month of the previous year respectively.
In the aforesaid month, the average price of each square meter of a residential unit in the capital city was equal to 74 million rials ($735), signifying a 6.1% increase compared to the fourth month and a whopping 62.1% jump against the fifth month of the year before.
From the total number of deals, five-year old residential units grabbed the lion's share at 44.3% and were followed by units 6-10 years old with a 15.5% share. Units of 11-15 and 16-20 years came next with a respective share of 14.6% and 14.9%, leaving units older than 20 years with a share of 10.7%, according to Financial Tribune.
The distribution of units dealt in the fifth month shows that among Tehran's 22 districts, District 5 had the highest share of deals at 13.3%. In all, 10 districts had an overwhelming share of 70.8%.
In terms of prices, District 5 again had the highest annual price jump at a hefty 81.8% while District 12 saw its average home prices grow the least at 25.3%.
Among Tehran's districts, the northern and affluent District 1 had the highest average price at 157.6 million rials ($1,564) while the southern District 18 had the lowest average price at 31.1 million rials ($309). The aforesaid numbers showcase a respective year-on-year increase of 59.3% and 37.4% respectively.
The total number of home deals registered in Tehran during the first five months of the current fiscal year amounted to 64,559, which is down by 7.3% compared to the 69,637 deals registered in the corresponding period of last year. A total of 68,616 deals were registered in the first five months of the fiscal 2016-17.
In terms of average prices, the first five months of the current year saw prices–at 64.78 million rials ($643)–jump by 45.5% compared to the similar period of last year when average per square meter prices stood at 44.51 million rials ($442). A year earlier, average prices were taken down at 42.24 million rials ($419).
CBI also reports on developments in tenement prices. According to the regulator, the home rent indicator of Tehran and all of Iran's urban areas respectively increased by 14.1% and 11.8% during the fifth month of the current year year-on-year. The share of housing and related costs in Iranian households' expenses stood at 33.1%.