The second consecutive month slow down in the annual apartment price rise
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 May 2017. The annual apartment price growth in the major cities of Lithuania was 4.4% (the annual apartment price growth in April 2017 was 5.1%).
In May 2017 apartment prices in the capital grew 0.2% with the average price per square meter reaching EUR 1,440 (+3 EUR/sqm). Since the last lowest price level recorded in May 2010 prices have increased by 24.8% (+286 EUR/sqm). Apartment prices in Kaunas in May grew by 0.5% with the average price per square meter reaching EUR 1.000 (+5 EUR/sqm). In Šiauliai and Panevėžys apartment prices grew by 0.1%, respectively the average price per square meter reaching EUR 602 (+1 EUR/sqm) and EUR 561 (+1 EUR/sqm). Meanwhile, in Klaipėda apartment prices remained stable and the average price per square meter was the same as in May – EUR 1.021.
In the past 12 months, the prices of apartments grew in all major cities: 5.5% in Vilnius, 3.8% in Kaunas, 2.2% in Klaipėda, 3.6% in Šiauliai and 3.0% in Panevėžys.
‘In May this year, the apartment market was active both across the country and in major cities. Although the number of transactions for apartments concluded in Vilnius, Kaunas, Klaipėda, Panevėžys and Šiauliai was 10% smaller than that in January-May 2016, a total of 12% growth was recorded compared to April 2017. Rising housing prices should not come as a surprise, because the overall housing market activity this year remains at a very high level despite significant monthly fluctuations. However, the results of the past few months have showed a gradual decrease in growth of price levels and the market remains in the sustainable development mode’, Saulius Vagonis, manager of the Valuation and Market Research Department at Ober-Haus, said.