In July 2013, the demand for new dwellings stays dullQuaterly business survey in the real-estate development - July 2013

In July 2013, according to the developers, the demand for new dwellings stays degraded. The corresponding balance of opinion is significantly below its long-term average. The business leaders forecast a slight amelioration of the housing starts for the next three months, linked to the improvment of the housing starts for rent. Nevertheless, the corresponding balance of opinion remains below its long-term average.

The demand for new dwellings stays sluggish

In July 2013, according to the developers, the demand for new dwellings stays degraded. The corresponding balance of opinion is significantly below its long-term average. The business leaders forecast a slight amelioration of the housing starts for the next three months, linked to the improvment of the housing starts for rent. Nevertheless, the corresponding balance of opinion remains below its long-term average.

Unsold dwelling stock would stabilise

The developers are as numerous as in April to indicate a decrease of their unsold dwelling stocks this quarter.

The developers are more numerous to indicate a drop of prices

According to developers, new housing average price would slow down; the corresponding balance of opinion is again significantly below its long-term average. Their opinion about the downpayment to acquire a new dwelling is degraded compared to the previous quarter. The developers are less numerous to indicate a decrease of the financing capacity to purchase a new housing.

tableau1 – Building construction economic outlook

Balances of opinion, in %, SA
Building construction economic outlook
Mean* Oct. 12 Jan. 13 April 13 July 13
New dwelling demand –6 –48 –45 –49 –43
Expected housing starts –5 –26 –27 –30 –27
- for sale –14 –38 –44 –40 –46
- for rent 1 –6 –4 –16 1
Unsold dwelling stock tendency –27 –12 –16 –20 –21
Housing average price for sale 8 –28 –20 –22 –26
Downpayment –20 –38 –40 –40 –44
Financing capacity –22 –65 –50 –62 –49
  • * Mean since july 1991.

Demand – New dwelling demand tendency