Property sales grow 16.2% in May in the city of São Paulo, says Secovi

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The real estate market in the city of São Paulo saw an increase in property sales in May, signaling the sector’s resilience in the face of rising inflation and interest rates. On the other hand, launches retreated.

The data are part of a survey by the Housing Union (Secovi-SP) anticipated this Friday (1st) for Broadcast, Grupo Estado’s real-time news system.

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The survey recorded the sale of 6,838 new residential properties in May, which represents a growth of 16.2% compared to the same month last year.

In the last 12 months (June 2021 to May 2022), sales totaled 69,614 units, equivalent to an expansion of 14.9% over the previous 12 months (June 2020 to May 2021).

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The survey also pointed to launches of 7,631 apartments in May, a volume 9.6% lower on the same basis of annual comparison. In 12 months, launches totaled 84,352 units, an increase of 16.2%.

Despite the higher number of sales, there was a reduction in the pace at which properties are sold. Sales velocity in May was 9.8%, lower than the 11.5% recorded a year earlier.

In the last 12 months, the velocity was 53.7%, a level below the 57.8% of the previous 12 months. The indicator considers the total number of properties sold in relation to the total inventory available in the period.

The capital of São Paulo ended May with a stock of apartments (units in the plant, under construction and recently delivered) of 62,675 units available for sale, a jump of 38.8% compared to May 2021, when it was 45,154 units.

This jump is due to the record of launches last year, which has been slowing down in recent months. Secovi-SP estimates that launches should reach 65,000 to 70,000 apartments in 2022. In the case of sales, the forecast is that they will be between 55,000 to 60,000 units.

Green and Yellow House

The properties included in the Casa Verde e Amarela (CVA) program represented 55% of the units sold and 52% of the units launched in May.

These properties are the ones with the highest demand and showed a sales velocity of 13.2% in the month, therefore, being above the average of the real estate market.

Since last year, the price range for properties in the Casa Verde e Amarela program has been updated to compensate for the increase in material costs and the need for companies to raise the final price of housing.

As a result, the ceiling rose to R$264,000 in the city of São Paulo, helping to unburden new projects.

Source: CNN Brasil

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