Small quarterly decrease of residential property prices in the first quarter of 2015 1

• The RPPI1 (houses and apartments) recorded a smaller decrease (1%) during 2015Q1 compared with the previous quarter (2%). House and apartment prices decreased by 0,8% and 1,5%, respectively.
• The quarterly decrease of the RPPI was the smallest observed since 2012Q4, when the acceleration of the declining prices started.
• On an annual basis, the RPPI declined by 6,5% during 2015Q1, compared with 8% in the previous quarter.
• Lower annual decreases were recorded in all districts compared with the previous quarter, which may indicate that the correction in prices could be coming close to its end.

Residential property price indices

In 2015Q1, the RPPI recorded a quarterly decrease of 1%, the smallest decrease since 2012Q4, when the acceleration of the declining prices started. House and apartment prices decreased by 0,8% and 1,5%, respectively, compared with 2,1% and 1,5%, respectively, in the previous quarter (Chart 1). As depicted in Chart 1, the RPPI returned to the average price levels of 2006, the year in which the over-lending for housing (as measured by the outstanding amount of housing loans) started, leading eventually to the overheating of the sector.
On an annual basis, the RPPI declined by 6,5%, compared with a decline of 8% in 2014Q4. House prices declined by 6% on an annual basis and apartment prices by 7,7%, compared with annual declines of 7,8% and 8,7%, respectively, in 2014Q4.

Download the full PDF Residential Property Price Index Q1 2015