Increase in Housing Costs Not Yet Reflected the Sales
Housing market is a big market. The size of the sector is estimated between 300 billion TL and 500 billion TL according to the number of houses sold and the average sales prices.
Last year, the value of new housing sales is estimated to be around 250 billion TL.
More resources than the increase in the TL and foreign currency deposit accounts in the banks last year have already led to the purchase of new housing.
Turkey Statistics Institution watching the changes in housing construction costs.
In 2017, housing construction costs increased by "average" 19.7%.
The average construction cost increase in new housing units also exceeded the annual average increase in producer prices.
Average construction costs rose 5.9% in 2015 and 7.7% in 2016.
Behind the average cost increase of 19.9% in 2017, there is an increase of 21.9% in materials.
In residential construction, in the last three months of 2017, the cost increase in wooden works increased by 26.6%, in metal materials by 47.2%, in paint and insulation by 20.1% compared to the same period of the previous year. The increase is 22.2% in glass, 16.2% in plumbing, 30.3% in heating material and 20.4% in electrical material.
It is understood that the annual average increase of 19.7% in the housing construction cost is not fully reflected in the sales prices of the new houses (for now) during the year.
The Central Bank is watching increases in new housing prices. Explains the rate of increase. According to the Central Bank's statement, the 12-month increase in new residential sales prices in 2017 was 11.68% as of October.
This information indicates that the increase in housing construction costs will be reflected in sales prices in the coming period, and that there will be significant increases in sales prices in the coming days.
In 2018 the movement in the housing sector will continue. Despite the increase in sales prices due to the increase in housing costs, demand will increase. Construction firms that see the increase in demand will continue to build housing.
Let us not forget that there is a boom in the housing and real estate market, attracting savings to residential and real estate markets, our people not being able to rely on alternative investment areas and not being happy with the bringing of alternative investment areas.
Many people consider housing and real estate investment as a long-term investment. (1) It is not frightening that they will invest in the first hand-new property, especially if the first hand-new houses are resold for a short time and can not easily find buyers; (2) they are sold at prices below the purchased price.
Those who know this, "Today, investment, to rent, to sell and earn money to buy new housing is not the day. To sit down is not the day of buying housing. They will buy housing to live, and when they have the opportunity, they must buy housing as soon as possible. "