The property market was less active during the election period, both before and after. Now we can see that activity and supply are picking up again, but not rapidly.
Currently, the market is being flooded with apartments that have been inherited, have stood empty and have not been permanently used by people.
Until now, it wasn’t an issue for the owners and people lived with the idea that they could renovate them when they have more money to move themselves or rent them out or sell them. Now clients want to sell.
There are some cases where clients sell larger apartments to buy smaller ones, but this is not so common as to be a trend.
They are probably motivated by rising prices, but the practical part is also important: parents whose children have grown up and moved away realise that they no longer need an apartment that big for two.
Whereas before the energy price rises it might have been difficult for them to survive with two children, now they realise that there is no need for extra rooms and they could just as well live in a smaller apartment.
Interest from potential buyers also remains. It may not be as strong as we would like now, because in the beginning and middle of the summer, before the energy price increase, people were actively looking and buying.
Two or three weeks ago there was very little activity, but now, looking back at this month’s results, activity is relatively satisfactory and demand is adequate. Only those people with sufficient means are now buying, and the banks are still lending on relatively normal terms.
If we look at residential areas, for example, the “Lauma” district and Ezerkrasti, property in these areas continues to be purchased by those who are interested in purchasing a new place to live, for example, because of family growth.
As for the centre, the seaside area and the more exclusive properties, which are perhaps above the average buyer’s means, activity there is still relatively high – people are very interested in good properties in the city.
There is a very high demand for private houses in Liepaja, even in spite of energy prices.
When we monitor the ads, we see that the number of views in the private houses section is very high and there is more demand than supply.
As for standard, serial apartments, there is more supply than demand.
A lot of people are now waiting. At this level of rumours, it is felt that buyers might think that there might be a price downturn, but I would not say that out loud – neither a downturn nor an upturn.
There have been small price corrections in the larger estates with standard, standard-type apartments, but it is not very noticeable, it is more a stabilisation of prices.
The supply is not yet large enough to affect property prices.
Oskars Dombrovskis, Owner, AVER Kurzeme
