Secondary housing in St. Petersburg has fallen in price by 6%

Secondary housing in St. Petersburg has fallen in price by 6%

By the end of May 2024, the average cost per square meter in the secondary real estate market of St. Petersburg has decreased by 5.8% since the beginning of the year. This is especially important for Russians, as rising mortgage rates and increased repair costs have influenced the choice of housing, making high-quality housings more in demand.

Key points:

• The average cost per square meter in the secondary real estate market of St. Petersburg has decreased by 5.8% since the beginning of 2024.
• Prices for low-quality housing, such as Khrushchevkas and panel houses, have decreased due to high repair costs.
• High-quality housing with good repair, on the contrary, shows an increase in prices, despite the general downward trend.

By the end of May 2024, the average cost per square meter in the secondary real estate market market of St. Petersburg reached 211.1 thousand rubles.

Since the beginning of this year — from January to May — the average price per 1 sq. m. in the secondary market of St. Petersburg has decreased by 5.8%. In absolute terms, the decrease amounted to 13 thousand rubles.

In the annual dynamics — May 2023 to May 2024 — the average price per 1 sq. m. in the secondary market of St. Petersburg also showed a negative trend, the price decreased by 1.3% or 2.7 thousand rubles.

From May 2019 to May 2024, the average cost per square meter in the secondary market of the city increased by 78.9% or 93.2 thousand rubles.

Alla Shinkevich, CEO of the Nevsky Prostor Real Estate Agency:

— In recent months, there has been a noticeable decrease in prices for certain real estate objects in the secondary real estate market of St. Petersburg. One of the key reasons for this phenomenon is a decrease in demand caused by an increase in the mortgage rate. This has significantly affected the market, especially for housing that do not meet high quality standards. The decline in prices has most affected housing, which can be described as substandard. Such objects include Khrushchevki and panel houses located far from metro stations and without repair. This is especially true for apartments in five-storey buildings and panel houses that are located in areas with low attractiveness, such as Krasnoselsky District and Krasnogvardeysky District as well as the northern districts of the city. These properties are currently selling poorly and are showing significant price reductions. 

One of the key reasons for this situation is the high repair costs. In this regard, buyers prefer housing that already has high-quality repairs, as they are not ready to spend additional money and time on its implementation. This factor has become crucial in the choice of real estate for many buyers, which has led to an increase in prices for such properties.

Interestingly, high-quality housing in good condition, on the contrary, shows an increase in prices. For example, a studio apartment in a modern house in a Civilian area was purchased for 9.6 million rubles, and after a month and a half, similar apartments already cost more than 10-11 million rubles. This indicates that the demand for high-quality housing remains high, and such housings not only retain their value, but also become more expensive.

However, new buildings without finishing are also having difficulty selling. Buyers realize that they will have to invest significant amounts in repairs, which makes such facilities less attractive. For example, a studio apartment in Shushary without finishing costs about 4.5-5 million rubles and has not been able to find a buyer for six months, despite the price reduction.

It can be concluded that an interesting trend is observed in the secondary real estate market of St. Petersburg: illiquid and low-quality housing is getting cheaper, while liquid and high-quality objects, on the contrary, are becoming more expensive. This situation reflects the current preferences of buyers who seek to purchase housing with minimal additional investments.

Source:  BSN.RU

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