The Notary College just released the May real estate sales data for Buenos Aires, and the numbers are a reversal of the cooling trend witnessed in March and April. While sales in those two months eased 0.7% and 1.3%, respectively, sales rose a respectful 6.8% in May compared to the same month in 2010.
La Nacion’s Alfredo Sainz says the May transaction increase was also accompanied by an increase in the total dollar value of all properties sold. The US$524 million of properties purchased in May represents a 13.4% increase over the US$462 million recorded in May 2010. The average price per unit sold in Buenos Aires falls just short of 400,000 pesos or US$100,000.
According to the Notary College, the 6.8% increase in average unit price reported in May is less than the inflation-adjusted increase in construction and material costs being reported by INDEC, the National Institute of Statistics & Census. Continued strength in the Buenos Aires real estate market is not surprising given the lack of solid investment alternatives and buyer demand for an inflationary hedge.
Sainz says the year-to-date numbers (January-May) show 22,763 transactions recorded at a total value of US$2.26 billion or US$100,721 per property sold. Demand in Buenos Aires is still greatest for premium developments “in various zones of the city” according to the Notary College. Carlos Sotelo of the Argentina Real Estate Chamber says the positive May sales numbers were driven by strong demand for one and two-room units in the best neighborhoods of Buenos Aires. (Full Story in Spanish)
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