The Dwelling Price Index increased in 2Q

According to Statistics Estonia, in the 2nd quarter of 2014, the Dwelling Price Index changed by 1.1% compared to the 1st quarter and by 14.5% compared to the 2nd quarter of 2013.

Compared to the previous quarter, the prices of apartments increased by 0.5% and the prices of houses by 2.5%.

Compared to the 2nd quarter of 2013, the prices of apartments have increased by 16.8% and the prices of houses by 8.8%. The prices of apartments increased in all three areas under observation: by 18.0% in Tallinn, by 17.8% in areas bordering Tallinn with Tartu and Pärnu cities and by 7.3% in the rest of Estonia.

Compared to the 1st quarter, the price index of apartments increased by 0.3% in Tallinn,

by 2.8% in areas bordering Tallinn with Tartu and Pärnu cities and decreased by 2.9% in the rest of Estonia.

The Dwelling Price Index expresses the changes in the square metre prices of dwellings purchased by households. The Dwelling Price Indices have been compiled for apartments and houses (including detached, semi-detached and terraced houses).

In the 2nd quarter of 2014, the Owner-Occupied Housing Price Index changed by -4% compared to the 1st quarter and by 10.4% compared to the 2nd quarter of 2013.

The Owner-Occupied Housing Price Index expresses the changes in the prices of the acquisition of dwellings new to the household sector and other goods and services that households purchase in their role as owner-occupiers. The index consists of four parts: acquisition of dwellings, other services related to the acquisition of dwellings, major repairs and maintenance, and insurance connected with dwellings.

The Owner-Occupied Housing Price Index is published on the base 2010 = 100. The time series starts from the first quarter of 2005; major repairs and maintenance are included from the first quarter of 2007 and insurance connected with dwellings is included from the first quarter of 2012. The annual index is calculated as the average of four quarters.

This is the first publication of the Owner-Occupied Housing Price Index by Statistics Estonia. The index will be published quarterly in accordance with the release calendar of Statistics Estonia.

Source: Statistics Estonia

Construction volumes decreased in 2Q

According to Statistics Estonia, in the 2nd quarter of 2014 compared to the same quarter of the previous year, the total production of Estonian construction enterprises in Estonia and foreign countries decreased 4%. The construction volumes have decreased for three quarters in a row.

In the 2nd quarter of 2014, the production value of construction enterprises amounted to 539 million euros, of which the production value of building construction was 337 million euros and the production of civil engineering totalled 202 million euros. Compared to the 2nd quarter of 2013, the volume of building construction in real terms increased 2% and the volume of civil engineering decreased 13%.

The upturn in new building construction on the domestic construction market, which started last year, continued the growth trend in the first half of this year. The repair and reconstruction work in building construction stayed on the level of the previous year. The construction of civil engineering objects, which had driven the construction market for nearly three years, has decreased for three quarters in a row and caused a downturn also in the whole construction market.

The construction volume of Estonian construction enterprises in foreign countries stayed the same compared to the 2nd quarter of the previous year, influenced mainly by the construction of buildings. Construction volumes in foreign countries accounted for 8% of the total volume of construction in the 2nd quarter of 2014.

According to the data of the Register of Construction Works, in the 2nd quarter of 2014, the number of dwelling completions was 631, i.e. 147 dwellings more than in the same period of 2013. More than a half of the completed dwellings were situated in blocks of flats. The majority of completed dwellings were situated in Tallinn.

There is still a demand for new dwellings with a good location and high quality. In the 2nd quarter of 2014, building permits were granted for the construction of 1,333 dwellings, which is a half more than in the 2nd quarter a year ago. The most popular type of building was block of flats.

In the 2nd quarter of 2014, the number of completed non-residential buildings was 212 with a useful floor area of 130,100 square metres – this was primarily made up of new industrial, commercial and storage premises.

Construction volume index and its trend, 1st quarter 2003 – 2nd quarter 2014
(average of quarters of 2010 = 100)

Diagram: Construction volume index and its trend, 1st quarter 2003 – 2nd quarter 2014

 

Source: Statistics Estonia

Apartment prices sprial upwards

A real estate price index created by website kv.ee shows prices are continuing to increase despite the number of sales dropping the Estonian housing market.

The index, which shows the prices of apartments on sale, has increased by 19.6 percent since August 2013, and 1.6 percent in the last month, kv.ee said.

Sellers usually ask 10-20 percent more that the actual property is worth due to emotional over-evaluation in hope of finding a buyer willing to pay.

The number of transactions has already decreased while the number of new listings has increase by 20 percent in the last six months.

Source: ERR News

Russian businessman buys historic manor house in Saaremaa

The new owner of the Tõlluste manor house located in Saaremaa is the Estonian subsidiary of Natura Siberica, a Russian-owned natural cosmetics brands, writes Meie Maa.

Businessman Toomas Leis sold the manor house to Russians at the start of August and the property should change hands within this month.

The parties have not disclosed the price, but in the spring Leis was selling the manor house complex for 575,000 euros.

Read more from BBN

Pictures

Businessman Toomas Leis bought the manor in 2007

The construction price index continued to fall in 2Q

According to Statistics Estonia, the percentage change of the construction price index in the 2nd quarter of 2014 was –0.7% compared to the 1st quarter of 2014 and 0.8% compared to the 2nd quarter of 2013.

After three years of growth, the construction price index took a downturn in the 1st quarter of 2014 (compared to the previous quarter). This downtrend continued in the 2nd quarter.

In the 2nd quarter, compared to the same quarter of the previous year, the construction price index was primarily influenced by rising labour costs, which accounted for more than three quarters of the total increase of the index.

Compared to the previous quarter, costs of building materials decreased by 1.7%, while the costs of building machines increased by 3.0% and labour costs rose by 0.7%.

In the 2nd quarter of 2014, the percentage change of the repair and reconstruction work price index was –0.6% compared to the 1st quarter of 2014 and 0.7% compared to the 2nd quarter of 2013.

The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in the expenditures on construction taking into consideration the price changes of three basic inputs: labour force, building materials and building machines.

Change in the construction price index, 2nd quarter 2014
1st quarter 2014 –
2nd quarter 2014, %
2nd quarter 2013 –
2nd quarter 2014, %
TOTAL -0.7 0.8
labour force 0.7 2.5
building machines 3.0 3.5
building materials -1.7 -0.4
Index of detached houses -0.5 0.2
Index of blocks of flats -1.0 0.6
Index of industrial buildings -0.2 1.2
Index of office buildings -0.9 0.8
Change in the repair and reconstruction work price index, 2nd quarter 2014
1st quarter 2014 –
2nd quarter 2014, %
2nd quarter 2013 –
2nd quarter 2014, %
TOTAL -0.6 0.7
labour force 0.6 2.5
building machines 2.3 5.2
building materials -1.5 -0.5

 

Source: Statistics Estonia

Kernu manor becomes a business center

Kernu manor, about 40 kilometers from Tallinn, is getting a major overhaul and will open as a business center with a small private airport.

Kernu municipality council member Hannes Orgse said on Kernu’s homepage that the current manor building will be revamped in order to be better suited for seminars, and office and accommodation rooms. A nearby plot is envisioned to be a small airport with all necessary buildings including hangars and maintenance workshops.

The 60.8 hectare complex was purchased by Evore from AS Hoolekandeteenus in 2012, which operated a nursing home there, for 350,000 euros. Evore is owned by businessman Viktor Siilats, Äripäev reported.

The local government is backing the project, saying the new manor complex will create jobs and help make the region more attractive.

Source: ERR News

Pictures – http://kinnisvara.hoolekanne.ee/et/pildigalerii-0

The dwelling price index increased in the 1st Q

According to Statistics Estonia, in the 1st quarter of 2014, the Dwelling Price Index changed by 4.8% compared to the 4th quarter of 2013 and by 17.5% compared to the 1st quarter of the previous year.

Compared to the previous quarter, the prices of apartments increased by 6.8% and the prices of houses decreased by 0.1%.

Compared to the 1st quarter of 2013, the prices of apartments have increased by 20.5% and the prices of houses by 9.9%. The prices of apartments increased in all three areas under observation: by 21.5% in Tallinn, by 21.1% in areas bordering Tallinn with Tartu and Pärnu cities and by 13.2% in the rest of Estonia.

Compared to the 4th quarter of the previous year, the price index of apartments increased by 5.9% in Tallinn, by 5.6% in areas bordering Tallinn with Tartu and Pärnu cities and by 13.9% in the rest of Estonia.
The Dwelling Price Index expresses the changes in the square metre prices of dwellings purchased by households. The Dwelling Price Indices have been compiled for apartments and houses (including detached, semi-detached and terraced houses).

The Dwelling Price Index is published on the base 2010 = 100. The time series start from the 1st quarter of 2005. The annual index is calculated as the average of four quarters.Dwelling Price Index, 1st quarter 2005 – 1st quarter 2014 (2010 = 100)

Diagram: Dwelling Price Index, 1st quarter 2005 – 1st quarter 2014 (2010 = 100)

Source: Statistics Estonia

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