Lower rate of decrease of residential property prices in the fourth quarter of 2014.
- The residential property price index (houses and apartments) recorded a quarterly decrease of 1,8% during 2014Q4. House prices recorded a rate of decline of 2,1%, while apartment prices declined by 1,5%.
- On an annual basis, the residential property price index declined by 8,2% during 2014Q4, compared with 8,9% in the previous quarter.
- All districts apart from Famagusta recorded a smaller annual decline compared with the previous quarter.
- The lower rate of decrease of prices led the residential property price index to return to around the price levels of 2006, when the over-borrowing in housing loans started.
Residential property price indices
In the fourth quarter of 2014, the residential property price index (RPPI)recorded a decline of 1,8%, the smallest decline of the last seven quarters. House and apartment prices declined by 2,1% and 1,5%, respectively, compared with 1,4% and 2,7%, 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 overborrowing in housing loans started, leading eventually to the overheating of the sector. On an annual basis, the RPPI declined by 8,2%, compared with a decline of 8,9% in 2014Q3. House prices declined by 7,8% on an annual basis and apartment prices by 8,6%, compared with annual declines of 7,9% and 10%, respectively, in 2014Q3
Download the full PDF Residential Property Price Index Q4 2014