In September, new residential property transactions in Türkiye showed a notable increase, highlighting shifts within the housing market. According to data released by the Turkish Statistical Institute (TurkStat), the sector demonstrated resilience despite overall declines in total housing sales.
Growth in New Home Sales
New house sales rose by 3.9% year-on-year, totaling 51,519 transactions in September. These new properties made up 36.2% of the total housing transactions during the month. This is indicative of a growing preference among buyers for newly constructed homes, reflecting changing consumer trends and possibly the quality and amenities that new properties offer.
Despite this increase in new home sales, the overall housing market saw a decline. Total home sales fell 9.3% compared to the previous year, amounting to 142,390. Existing home sales, in particular, dropped significantly by 15.3%, bringing the total to 90,871. These figures suggest that while new developments are thriving, the resale market is facing challenges, potentially due to economic factors or buyer hesitancy.
Monthly Adjustments and Trends
When adjusting for calendar effects, new home sales still exhibited a robust growth rate of 3.8% on an annual basis. Furthermore, on a seasonally and calendar-adjusted basis, new home sales rose by 5.5% compared to August, emphasizing a positive trend in the short term. In contrast, existing home sales remained stagnant, showing no change month-over-month.
The role of financing in the housing market remained significant, as mortgaged home sales saw a year-on-year increase of 5.1%, with 23,397 transactions making up 16.4% of the overall market. This growth signals that prospective buyers are taking advantage of favorable mortgage conditions, possibly encouraging them to enter the market despite fluctuations in other areas.
Foreign Investments in the Housing Market
International interest in the Turkish housing market continued to grow, with sales to foreign buyers increasing by 9.9% to 2,167 properties, which is 1.5% of total sales. The data indicated that Russian buyers led the charge, purchasing 388 homes, followed closely by buyers from Iraq and Germany with 166 and 162 properties, respectively. This trend highlights Türkiye’s attractiveness to foreign investors, which could help stabilize the market in times of uncertainty.
Year-to-Date Sales Overview
For the first nine months of the year, new home sales experienced a slight decline of 0.6% compared to the same period last year, totaling 359,913. Additionally, total housing transactions saw a more significant decrease of 7.2%, arriving at 1.09 million. These figures reflect the complexity of today’s market environment, where economic factors may impact buyer confidence and overall sales.
In summary, while the new home segment displayed encouraging growth, the overall housing market is grappling with declining sales. The varying trends across different market segments indicate the need for strategic approaches to capitalizing on the strengths of new home sales while addressing the challenges faced by existing properties.