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St. Petersburg Experiencing Housing Glut

Published: July 9, 2014 (Issue # 1819)



  • Glavstroi-SPB has just started selling units in North Valley, their newest residential complex.
    Photo: Glavstroi-SPB

The amount of new housing available in the St. Petersburg real estate market for the first six months of 2014 is up 67 percent more than a year ago. The main introduction of new housing into the market came in the first quarter while the demand had stopped by the arrival of summer.

In the first half of the year, 1.4 million square meters of housing was commissioned, according to the citys Committee for Construction. In the first half of 2013, 948,000 square meters were built.

In the first quarter, according to the committee, 934,000 square meters were put on the market, an increase of 60 percent. From February to April, interest in buying a home was attributed to currency fluctuations and people actively invested in housing still under construction, said Alexei Gusev, commercial director for the construction company Glavstroi-SPB.

According to Gusev, in April Glavstroi-SPB started renting out their fifth completed residential complex North Valley, which has a total area of 98,000 square meters.

By the end of the year there will be a total of over 470,000 square meters in North Valley. In the first half of the year, the average price per square meter was 70,000 rubles ($2,047), which is 5 percent higher than the year before, Gusev said.

Despite the high demand at the beginning of the year, prices for the first half of the year increased by only 2.9 percent when compared to last year in January and by June there was an increase of only 0.5 percent, said Irina Onishchenko, director of LenSpetsSMUs sales department. A large number of new projects entering the market have kept the prices high and an increase in prices of 7 to 9 percent is expected by the end of the year, she predicted.

According to Inna Malinovskaya, a spokesperson for the Group of Companies Center of Shared Construction, or CDS, the average price for the mass-market segment starts from 65,000 to 75,000 rubles ($1,900 to $2,200) for 1 square meter, depending on the location, the quality of the housing and whether or not its under construction. According to Malinovskaya, demand remains high.

Despite more housing being constructed, it is selling at about the same rate as last year approximately 2 million square meters in the first half of the year, said Onishchenko,.

By the end of the year, approximately 4 million square meters of housing will be made available for sale, according to Gusev. Denis Babakov, Commercial Director for LSR Real Estate North-West, is more optimistic, predicting 5 million square meters, but only under favorable market conditions and if all planned buildings are put up for sale.





 


ALL ABOUT TOWN

Thursday, July 24


Liliana Modiliani, a well-known Russian stylist, will talk about choosing clothes that fit during her lecture at 7 p.m. at the Pryamoy Efir art club, 13 Viborgskoe Shosse.



Friday, July 25


Discuss Russias economic and political prospects for 2014 during a Business Breakfast organized by SPIBA at 9.30 a.m. in the Bank Saint-Petersburg office at 64


Malookhtinsky Prospekt.


Start your weekend with adorable miniature pigs at the Squealing Pig festival at 7 p.m. this evening in the Karl & Friedrich restaurant, 15 Iozhnaya doroga, on Krestovsky Island.



Saturday, July 26


Hundreds of brand-new and retro cars, drag and drift shows, test drives and karting are planned for the Avtobum-2014 festival, which will take place in front of the RIO shopping center at 2 Fuchika Ulitsa.


Participants in todays SaniDay Summer competition will impress visitors with their hand-made, unusual and hilarious boats, which will race at the Igora Resort near the 54th kilometer on Priozerskoe Shosse.


Metro Family Day will include both serious lectures for adults and master-classes for children, making the event interesting for the whole family. To participate, come to Kirov Park on Yelagin Island.


Photography will be the focus of todays Photosubbota, which features lectures by famous photographers, meetings with photo schools and studio representatives, and participation in a photography competition. The event starts at noon at Petrokongress, 5 Lodeynopolskaya Ulitsa.


If you like cycling, make sure to visit the Za Velogorod Festival with its retro bike exhibition, market and live music. The second round of the Leningrad Criterium race will also take place during the event at Petrovsky Arsenal in Sestroretsk.



Sunday, July 27


Navy Day will be celebrated with a weapon and military transportation exhibition, self-defense master classes and concerts. The event starts at 1 p.m. in the 300th Anniversary Park of St. Petersburg.



Monday, July 28


Dont miss a chance to see the latest achievements in robotics during the RoboDom interactive show, exhibiting more than 150 robots. The show will be at BUM center, 22/2 Gzhatskaya Ulitsa, until Aug. 3. The entrance ticket costs 350 rubles ($10).



Tuesday, July 29


A video of a Queen concert from 1986 will be shown today at 8 p.m. in Yaschik, 50/13 Ligovsky Prospekt.



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