St. Petersburg, April 16, 2014. According to Colliers International, by the beginning of Q2 2014, around 1,600 elite apartments totaling 190,000 m2 are being offered for sale by developers in St. Petersburg. This 15% increase comparing to the 2013 year-end results is the highest figure in the history of St. Petersburg elite residential real estate market. Around 65% of this volume is formed by the projects of four developers: Vozrozhdenie Sankt Peterburga, Leontievsky Mys, Evrostroy and YIT Saint-Petersburg.
157 apartments totaling around 18,000 m2 were sold in the first three months of 2014, which is comparable with the results of Q4 2013 (155 apartments sold). Average prices for elite residential apartments increased by 1.5% in Q1 2014 and reached RUB230,000 and RUB360,000 per m2 for premium and deluxe segments respectively. The minor prices increase is caused by the significant supply volume increase.
The low-price apartments are of the highest demand. According to the results of Q1 2014, the apartments priced in the range of RUB10–20 million and RUB20–30 million took approximately equal shares of 40% each of the total sales. The apartments worth more than RUB30 million had 15–17% share.
Quarterly sales volume will remain at the same level throughout the year. Among new residential projects, with sales campaigns starting in 2014, approximately 50% will be presented in apart-hotel format. We expect the prices in primary elite residential market to increase by 6–8% in 2014.
Andrey Kosarev, Managing Director, Colliers International in St. Petersburg:
“An emerging investors` demand for elite apartments is observed. These investors are interested in apartments with the balanced price-quality ratio, which results in average purchased area reduction and the reduction of such offer on the primary market. Despite the large amount of projects entering the market, the prices are expected to grow due to reasonably priced elite supply reduction and the prices growth in the projects with the last year prices.”