Türkiye: House sales decreasee by 44.4% in June, sales to foreigners also decrease

Home sales fell 44.4% year-on-year in June after falling 7.7% in May. Housing sales in June amounted to 83,636 units. 1Y home sales fell 22.1% year-on-year to 565,779 units. Data for June show that the downward trend in the housing market continues.

Housing loan sales, which decreased by 66.8% in June, constituted 16.1% of total sales in the month. Foreign nationals bought 2,625 houses in June, down 69.6% compared to the previous year. Russia (733 units), Iran (333 units) and Iraq (175 units) were the countries with the highest number of buyers. Following this decline, the 46.9% drop in May indicates that the decline in overseas house sales has gained momentum. The share of foreigners in total house sales, which was 5.7% in June 2022, became 3.1% in June.

First house sales decreased by 42.1% compared to the same month of the previous year and became 25,886. Second-hand house sales also decreased by 45.4% to 57,750 units.

First Hand House Sales (y/y change)… Source: TurkStat, Dinamik Yatırım

It can also be mentioned that the long holiday in June, and therefore at least one week of calendar loss, also contributed to the decrease in house sales. In the general trend, stagnation in the housing market comes to the fore. The 22.1% decrease seen in the 6-month trend shows that there is a slowdown spread throughout the year. The decline in home sales has accelerated in both first-hand and second-hand sales. The tightening in financing conditions in the housing market is also expected to contribute to the contraction trend in housing sales.

Kaynak Enver Erkan / Dinamik Yatırım

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