Sales of new homes in the city of Sao Paulo totaled 28,300 units in 2011, a fall of 21.2% from a year earlier, according to Sao Paulo’s Secovi. According to Folha, these sales numbers are the lowest since 2005 (23,800) and the same of 2006.
Homes with two and three bedrooms accounted for 77% of sales. “The year of 2010 was a year of exuberant growth. It was completely out of the curve,” said Celso Petrucci, chief economist at the organization, trying to minimize the impact of the reduction.
The only growth numbers came from one-bedroom apartments, which sold 6,600 units, 54% higher than 2010 (we explain: as the square meter gets more expensive, people can not afford nor get credit for bigger units and start settling for the one-bedroom units. These are also very popular with investors.)
The properties valued over $ 500,000 accounted for 18.4% of launches in 2009, 25.8% in 2010 and reached 28.2% last year. (we explain: price went up… for instance, a unit that cost R$450k in 2009, went up to R$550k in 2010 and so on… hence, the reason of the increase of “more expensive units” compared to other categories).
Sale of new residential properties in the city of São Paulo, in thousand units:
2005 – 23,8
2006 – 28,3
2007 – 36,6
2008 – 32,8
2009 – 35,8
2010 – 35,9
2011 – 28,3