Second lowest monthly figure recorded in mortgaged housing sales

The share of mortgaged sales in the total has reached single digits only 7 times in the 130 months since January 2013, when these statistics began to be published. These periods were September, October, November, and December of 2018, January of 2019, and September and October of 2023. The share of mortgaged sales in the total was in the double digits for the remaining 123 months. According to data from the Central Bank of the Republic of Turkey (TCMB), the weighted annual average of housing loan interest rates provided by banks, which was 19.34 percent on May 26, has risen to 41.67 percent as of November 3.

"DEPOSITS HAVE BEGUN TO APPEAR MORE ATTRACTIVE TO INVESTORS"

Istanbul University Faculty of Economics faculty member Prof. Dr. Sefer Şener stated that while housing loan interest rates were around 20 percent annually by May due to the low-interest policy in the pre-election period, they have risen in parallel with the tightening policies implemented by the TCMB along with the new economic management since May, exceeding 40 percent.

Referring to the decline in mortgaged housing sales due to this development, Şener made the following statements: "While the share of mortgaged sales in the total was consistently in double digits, it has been on a continuous downward trend for the last 3 months due to the policies of the new economic management and the tightening steps taken. High housing loan rates have a significant share in this decline, and the rise in deposit rates is also effective. High rates are directing citizens with cash on hand toward deposits. In other words, first of all, housing has become more expensive due to high loan rates. Secondly, those with money prefer to deposit it in the bank due to the high deposit rates. In addition to all this, housing investment has begun to lose its appeal due to inflation. That is, even those who have enough cash to buy real estate are turning to deposits, where they will earn higher income than rental yields with this money." Prof. Dr. Şener added that the demand for mortgaged housing would continue to decrease.

"HOUSING DEVELOPERS ARE FINDING SOLUTIONS THROUGH INSTALLMENT SALES"

Nazmi Durbakayım, Chairman of the Board of the Istanbul Builders Association (İNDER), also stated that mortgaged sales have hit rock bottom due to the rise in interest rates, in addition to the increase in housing production costs and housing prices linked to inflation.

Durbakayım said, "On the other hand, the reluctance of banks to provide loans has dealt a blow to mortgaged housing sales. As a precaution against this situation, housing developers have chosen to produce solutions by making installment sales within their own structures."

News Source: 12punto