10% of Sales in Branded Housing Projects Made to Foreign Investors

REIDIN-GYODER New Residential Price Index results for August 2019 have been released. According to the index, the inventory depletion rate recorded at 3.18% in August reached the highest level of the last 5 months. Bank loan usage increased by one percentage point to 15% compared to the previous month, while promissory note and down payment usage each declined by one percentage point. In August, when 10% of sales realized within branded residential projects were made to foreigners, prices rose by 0.43% compared to the previous month and 2.80% compared to the same period last year. Assessing the August 2019 results of the 'REIDIN-GYODER New Residential Price Index', GYODER Chairman Assoc. Prof. Feyzullah Yetgin stated: "Although bank loan usage increased from 14% in May, June and July to 15% in August, I can say this rate is quite low. With interest rates continuing to decline, residential loan usage will also resume its upward trend. Furthermore, we see that the foreign sales ratio, which was 5% in July, increased by 5 percentage points to 10% in August. I believe that momentum in new residential units will continue in the coming months and sales to foreign investors will continue to increase." REIDIN General Manager Alp Çapa made the following comments regarding the August results of the REIDIN-GYODER New Residential Price Index: "In August, a 0.43% increase occurred compared to the previous month and 2.80% compared to the same period last year. 10.29% of sales realized within branded residential projects were made to foreign investors, with 2+1 type units predominantly preferred in these sales. The inventory depletion rate recorded at 3.18% in August appears to have reached the highest level of the last 5 months. When examining payment methods for residential unit sales, there was a 10.47% increase in bank loan usage in August compared to July. From this, we can conclude that residential loan interest rate reductions contributed to the increase observed in the inventory depletion rate."

New Residential Price Increase 0.43%

According to the results of the 'REIDIN-GYODER New Residential Price Index', developed based on residential units produced primarily by institutional real estate companies, referred to as 'branded projects' in public discourse: In August, a nominal increase of 0.43% occurred compared to the previous month, 2.80% compared to the same period last year, and 87.40% compared to January 2010, the base period of the index. In the New Residential Price Index, in August compared to the previous month, a 0.48% increase was recorded in 1+1 unit type, 0.52% increase in 2+1 unit type, 0.32% nominal increase in 3+1 unit type and 0.43% nominal increase in 4+1 unit type.

Foreign Sales Increased by 5 Percentage Points Compared to Previous Month

In August, 10% (6-month average 8%) of sales realized within branded residential projects were made to foreign investors, with 2+1 type units preferred at a rate of 38% in these sales.

Bank Loan Usage Rate 15%

When examining down payment, promissory note and bank loan usage rates of customers purchasing residential units from branded projects: In August, down payment usage was at 41%, bank loan usage at 15% and promissory note usage at 44%. In July, down payment usage was 42%, promissory note usage 45% and bank loan usage 14%.

Inventory Depletion Rate 3.18%

When evaluating the August inventory depletion rate figures of the New Residential Price Index, a 3.18% depletion was observed in unit-based stocks. In August, 56% of sold residential units consisted of completed inventory and 44% of uncompleted residential inventory.