The sales crash on the housing construction market

The information, published by Rosreestr, shows a sharp decrease in sales on the primary market of housing construction in the fourth quarter of 2015.

The main data, depicting information on the number of registered agreements of participation on a share basis in the 4^th quarter of 2014, are presented in Table1.

 

The downward dynamics in the 4^th quarter of 2015 as compared with the same period in 2014.

Table 1

	4th quarter of 2014	4th quarter of 2015	dynamics, %
Registered agreements on all types of premises construction co-funding	287 236	186 662	-35
Registered agreements on housing construction co-funding	277 161	171 558	-38.1
…including borrowed finance and special-purpose loan attraction	68 189	66 697	-2.2
Registered ownership rights of a participant of multi-storey housing construction on a share basis	145 340	151 737	4.4

Source: Housing Industry Development Institute

On the whole, the data for 2015 are better, but they also offer evidence of a serious crisis (see Table 2).

 

The downward dynamics in 2015 compared with 2014

Table 2

	2014	2015	dynamics %
Registered agreements on all types of premises construction co-funding	846 753	679 197	-19.8
Registered agreements on housing construction co-funding	740 574	623 453	-15.8
…including borrowed finance and special-purpose loan attraction	215 151	199 552	-7.3
Registered ownership rights of a participant of multi-storey housing construction on a share basis	505 964	544 849	7.7

Source: Housing Industry Development Institute

 

The experts from the Housing Industry Development Institute point out the sharp growth in the share of mortgage loan deals. In the fourth quarter of 2015, the share of such deals was 40% as compared with 23% in the fourth quarter of the previous year.

According to the specialists, this confirms the high efficiency of the mortgage loan state support program.  

 

Dmitry Sergeev

Adapted from the information by the Housing Industry Development Institute