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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 city’s 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 LenSpetsSMU’s 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 it’s 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

Wednesday, Oct. 22


English teachers can expect to receive a few useful pointers today from Evgeny Kalashnikov, the British Council regional teacher, during the EFL Seminar this afternoon hosted by the British Book Center. The topic of today’s seminar is “Grammar Practice.”


Young Petersburgers will get the chance to jumpstart their careers at “Professional Growth,” a job fair and forum featuring more than 40 major Russian and international companies vying for potential candidates for future positions. The forum not only is a chance to network but also to learn more about the modern business world and to understand what it takes to get the job you want.



Thursday, Oct. 23


AmCham’s Public Relations Committee meeting is scheduled to meet this morning at 9 a.m. in their office in the New St. Isaac Office Center.


Sportsmen get their chance to stock up on all kinds of gear at the Hunting and Fishing 2014 exhibition starting today at Lenexpo. Everything from rods and reels to boats, motorcycles and equipment for underwater hunting will be on sale so that any avid outdoorsman can always be prepared.



Friday, Oct. 24


SPIBA’s ongoing “Breakfast with the Director” series continues today, featuring Tomas Hajek, Managing Director of the Northwest Division at Danone Russia. Hajek will be discussing collaborations between businesses from different cultures. The meeting is at 9 a.m. at the Domina Prestige St. Petersburg hotel and all who wish to attend must confirm their participation by Oct. 23.


Get your gong on at “Sounds of the Universe,” a concert at the city planetarium this evening incorporating six different gongs to create relaxing songs that will transport you upwards into the stratosphere. Tickets are 700 rubles ($17).



Saturday, Oct. 25


AVA Expo, the eighth edition of the event revolving around all things pop culture, returns to Lenexpo this weekend. Geeks, nerds, dweebs and dorks will have their chance to talk science fiction and explore a variety of international pop culture. Tickets for the event can be purchased on their website at avaexpo.ru.



Sunday, Oct. 26


Zenit St. Petersburg returns home for the first time in nearly a month as they host Mordovia Saransk in a Russian Premier League game. Currently at the top of the league thanks to their undefeated start to the season, the northern club hopes to extend the gap between them and second-place CSKA Moscow and win the title for the first time in three years. Tickets are available at the stadium box office or on the club’s website.



Monday, Oct. 27


Today marks the end of the art exhibit “Neophobia” at the Erarta Museum. Artists Alexey Semichov and Andrei Kuzmin took a neo-modernist approach to represent the array of fears that are ever-present throughout our lives. Tickets are 200 rubles ($4.90).



Tuesday, Oct. 28


The Domina Prestige St. Petersburg hotel plays host to SPIBA’s Marketing and Communications Committee’s round table discussion on “Government Relations Practices in Russia” this morning. The discussion starts at 9:30 a.m. and participation must be confirmed by Oct. 24.



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