Despite the growing number of transactions for apartments, the prices are at a standstill in Vilnius
The Ober-Haus Lithuanian apartment price index (OHBI), which records changes in apartment prices in the five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.2% in April 2018. The annual apartment price growth in the major cities of Lithuania was 2.9% (the annual apartment price growth in March 2018 was 2.8%).
In April 2018 the biggest apartment price increase was recorded in Šiauliai and Panevėžys, where prices increased respectively by 0.7% and 0.8% and the average price per square meter reaching EUR 624 (+5 EUR/sqm) and EUR 588 (+5 EUR/sqm). Meanwhile, in Kaunas and Klaipėda the same price growth was recorded and was 0.5% with the average price per square meter reaching EUR 1,042 (+5 EUR/sqm) and EUR 1,045 (+5 EUR/sqm) respectively. In Vilnius no price change was recorded and average apartment price remained the same as in March 2018 – EUR 1,469.
In the past 12 months, the prices of apartments grew in all major cities: 4.8% in Kaunas and Panevėžys, 3.8% in Šiauliai, 2.3% in Klaipėda and 2.2% in Vilnius.
“This year a further apartment price standstill has been recorded in the country’s capital. Since the beginning of 2018, the prices for apartments have largely remained at the same level in Vilnius. Meanwhile a further slight, but steady increase in the prices has been recorded in other major cities of the country.
Unlike the prices for apartments, the activity level of the apartment market in Vilnius continues to grow and has already exceeded the indicators at the beginning of the previous year. According to the State Enterprise Centre of Registers, 946 apartment purchase and sales transactions were concluded in April this year, 1% more than in March this year, making this the best monthly result this year so far. The activity indicators of the first four months of 2018 show a 1% increase in the number of transactions compared to the same period in 2017.
Similar trends can be observed in Klaipėda and Panevėžys, where, a 7% and 12% increase in the number of transactions for apartments respectively was recorded compared with March 2018. April has been the most active month in these cities so far this year too. At the same time, the results in April in Šiauliai and Kaunas compared to March this year were poorer – a 4% and 12% decrease in the number of transactions for apartments was recorded respectively.
Essentially, spring moods continue to dominate in the housing market maintaining the market activity at the levels of the beginning of 2016 and 2017 and a moderate price growth,” Raimondas Reginis, Ober-Haus Market Research Manager for the Baltic countries, said.