Only a minor effect so far on new home sales due to higher asset transfer tax
(Thomson Reuters ONE) -
An increase in asset transfer tax at the beginning of next year has not so far
invigorated the new home market, according to some 73% of OP Kiinteistökeskus
agents. A survey conducted in the last week of November had OP Kiinteistökeskus
managing directors and sales directors as respondents. But then again, around
14% of the agents had seen increased activity in the market due to the higher
asset transfer tax.
This increased market activity is best reflected in the sales of homes in which
debt-financing accounts for a considerable share of the purchase price. In
addition, some 13% of the respondents said that the market for new homes had
picked up but they did not know for sure whether this had anything to do with
the tax increase.
- The survey revealed the situation as it was at the end of November, and we can
expect a more active new home market before we enter 2013, says Kenneth
Sandberg, Vice President, Estate Agent Services of OP-Pohjola.
The asset transfer tax levied on owner-occupied homes will increase from 1.6% to
2.0% on 1 January 2013. The fact that the tax will be paid on the debt-free
selling price, not on the selling price as previously, will in many cases have
greater implications because the debt-free price may be dozens of per cent
higher the selling price with the result that the tax will rise in the same
proportion.
Sales of used homes and detached houses at good levels
According to preliminary data released in November, sales of used homes and
detached houses were somewhat at the same level as in November a year ago, i.e.
sales were at rather good levels.
- We are satisfied with this result. The flattening out of property prices and
low borrowing costs in particular have keep the housing market alive, although
the public debate on the prolonged debt crisis has at the same time slowed down
many home buyers' decision-making process, states Sandberg.
Very minor changes in timeframes for selling a home
At the end of November, the timeframe to sell a flat through the OP
Kiinteistökeskus real estate agents averaged 67 days, which was less than the
69 days reported for the third quarter but was still more than the 65 days
reported in November a year ago. The average timeframe for selling detached
houses lengthened to 114 days in comparison with the figure (109) for the
previous quarter and that (109) a year ago. OP Kiinteistökeskus calculates the
selling timeframe from the date of signing a contract with the agent until the
actual selling date.
Home sales are expected to remain moderate in the next few months
- I expect home sales to remain quite steady in the next few months. The
employment situation will continue to present the greatest uncertainty in this
respect. Since the employment rate still hovers around 92%, housing market
prospects are still fairly good, states Sandberg.
Sandberg thinks that a certain self-financed proportion of the home price that
will possibly be required of a home buyer to qualify for a home loan is, by and
large, a sound proposal but postponing such regulations until a later future
date would probably be wiser considering the current economic situation.
For more information, please contact:
Kenneth Sandberg, Vice President, Estate Agent Services, OP-Pohjola, tel. +358
(0)400 473678
OP-Pohjola Group
OP-Pohjola Group is Finland's leading financial services group providing a
unique range of banking, investment and insurance services. The Group's mission
is to promote the sustainable prosperity, well-being and security of its owner-
members, customers and operating regions through its local presence. Its
objective is to offer the best and most versatile package of loyal customer
benefits on the market. OP-Pohjola Group consists of some 200 member cooperative
banks and the Group's central institution, OP-Pohjola Group Central Cooperative,
with its subsidiaries and closely-related companies, the largest of which is the
listed company Pohjola Bank plc.
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pohjola Pankki Oyj via Thomson Reuters ONE
[HUG#1662678]
Unternehmensinformation / Kurzprofil:
Datum: 05.12.2012 - 10:30 Uhr
Sprache: Deutsch
News-ID 209770
Anzahl Zeichen: 4970
contact information:
Town:
POHJOLA
Kategorie:
Business News
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"Only a minor effect so far on new home sales due to higher asset transfer tax"
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