The construction price index took an upturn

According to Statistics Estonia, in the 3rd quarter of 2014, the construction price index changed 0.3% compared to the 2nd quarter of 2014 and -0.2% compared to the 3rd quarter of 2013.

Compared to the previous quarter, the construction price index was on the rise again after a two-quarter decline, but still remained below the level of the third quarter of the previous year.

In the 3rd quarter, compared to the same quarter of the previous year, the construction price index was primarily influenced by a decline in the price of materials, which accounted for three-quarters of the total decline of the index.

Compared to the previous quarter, the costs of building materials increased by 0.4%. The costs of building machines increased by 0.1% and labour costs rose by 0.2%.

In the 3rd quarter of 2014, the percentage change of the repair and reconstruction work price index was 0.5% compared to the 2nd quarter of 2014 and -0.1% compared to the 3rd 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, 3rd quarter 2014
2ndt quarter 2014 –
3rd quarter 2014, %
3rd quarter 2013 –
3rd quarter 2014, %
TOTAL 0.3 -0.2
labour force 0.2 0.4
building machines 0.1 3.0
building materials 0.4 -0.8
Index of detached houses 0.4 -0.5
Index of blocks of flats 0.0 -0.6
Index of industrial buildings -0.1 -0.1
Index of office buildings 0.6 -0.1
Change in the repair and reconstruction work price index, 3rd quarter 2014
2nd quarter 2014 –
3rd quarter 2014, %
3rd quarter 2013 –
3rd quarter 2014, %
TOTAL 0.5 -0.1
labour force 0.6 0.9
building machines -0.2 4.1
building materials 0.5 -0.8

Source: Statistics Estonia

Investors not interested in Linnahall building

Despite claims that the Port of Tallinn could be the Tallinn City Council’s long-awaited partner who would help refurbish Linnahall, it now turns out the company’s interest in the building is extremely limited.

Tallinn has tried to find partners and investors for Linnahall since 2009 when the concert hall, built during the Soviet era, closed its doors to the general public. This, however, has proved problematic – partially due to restrictions set on its renovation by the National Heritage Board, whose current rulings are good for another three years.

Deputy mayor Taavi Aas announced last week that the city has finally found a potential partner in Port of Tallinn. However, the company’s chairman Ain Kaljurand told Postimees that their interest lies in the harbor area, not in Linnahall itself.

Although Linnahall’s sorry state is in nobody’s interest and the decaying complex casts a shadow on the entire area, the Port of Tallinn, which owns several neighboring properties, currently has no investment plans, says
Kaljurand.

Aas has also told Postimees that Linnahall could be converted into a conference center. This would be the first step in developing conference tourism in Estonia. Estonia will hold the EU presidency in four years’ time.

Kaljurand, who applauds the idea, does not rule out that the Port of Tallinn could consider future investments if such a plan is put into development. He does, however, say that as it stands the company has no reason to invest in the derelict building.

Meanwhile, Eesti Päevaleht reports that the City Council is also considering dividing the building into three separate properties, but this would require the National Heritage Board to revise its current status quo on Linnahall, says Aini Härm, director of the Tallinn Culture and Heritage Department.

Source: ERR News

 

See picture here

Estonian mansions for 1 euro

A side effect of the declining population and the flow of people away from rural areas is that dozens of large former school buildings, some converted manor houses, are on sale for a song.

Citing one ad posted by Valgjärve municipality in southern Põlva County, a daily suggests that other municipalities have also listed such buildings for as low as one euro. But with the requirement that the buildings be fixed up and used, there are many offers and few takers, as heating costs are high, Postimees reported on Tuesday.

In Järva County alone, nine schoolhouses have been left empty this century, and only four are currently in use, with three more sold off to private ownership, but still left unused.

However, there are some positive examples as well, with some former schools turned into cottage industries, youth centers, libraries or nursing homes, the paper writes.

Source: ERR News

Lutheran Church to develop a 33-storey highrise building in city centre

Estonian Evangelical Lutheran Church plans to develop a 130-metre-high building in Tallinn centre for offices and apatments, writes Postimeees.

In May EELC asked the Tallinn City Government to initiate detailed planning for the 1,000 sqm lot near Hotel Olympia at Lennuki 22 / Maakri 29.

EELC’s partner in the project is Fund Ehitus which owns the adjoining 600 sqm lot. Both companies plan to merge the properties for the project.

Read more from BBN

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

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