Kuwait’s property sales up 18pc in June
Kuwait, August 26, 2012
Real estate sales in Kuwait during June totaled KD266 million ($943 million), almost unchanged from June of last year, but up 18 per cent month-on-month, a report said.
The residential segment rallied while both the investment and commercial segments lagged, netting a small 1.2 per cent year-on-year (y/y) increase in sales, added the latest Kuwait Economic Brief issued by the National Bank of Kuwait (NBK).
Residential sector sales totaled KD148.0 million in June, an increase of KD34 million y/y on the back of an increased number of transactions.
The Ahmadi governorate saw the highest number of transactions for plots of land (65 per cent of total plot sales), with Mubarak Al Kabeer being a distant second.
As for home sales, Hawalli governorate saw the most activity (25 per cent of home transactions), with Ahmadi governorate being a close second. Sales in the residential sector continue to show robustness, in line with an overall view of a healthy household sector, the brief said.
The investment sector saw KD113.1 million in sales during June, down KD 22 million compared to last June.
According to the report, the decrease in sales was a result of fewer transactions conducted during the month, whereas the average transaction size remained within its normal range. Beside some expected seasonal slowdown, the y/y dip was also due to a “basis effect” —sales in June 2011 were exceptionally high, making this June’s sales look relatively softer in comparison. The investment real estate sector should generally do well in 2012.
The commercial sector saw just KD5.3 million in sales, a drop of KD 8.5 million compared to the same month of last year, said the brief.
Two out of three transactions took place in Kuwait City, with the third being in Hawalli governorate. The low number of transactions and corresponding large variance in their size reflects the volatility of this sector.
The Savings and Credit Bank (SCB) approved almost KD10 million in loans, spread out over 159 loan applications (for an average of about KD63,000).
More than half of the approved loans were for the purchase of existing homes, while a little over a third were for new constructions. The SCB also disbursed another KD12.9 million in loans.
Expected slowdown due to summer, vacations, and Ramadan should become apparent in the coming two months, but the residential and investment segments should support the Kuwaiti real estate sector in having another overall solid year, the brief concluded. – TradeArabia News Service
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