Audit Chamber says housing prices in Russia reach ceiling

MOSCOW, Sep 7 (PRIME) -- Housing prices in Russia, which have been actively rising over the past few months, have reached their maximum, Natalia Trunova, an auditor at the Audit Chamber, said in an interview with PRIME at the Eastern Economic Forum, released on Tuesday.

“As for the growth of prices, we believe that after the last surge they have reached their ceiling,” Trunova said, attributing the growth to higher prices for building materials, reduced-rate mortgage loans and stress from the pandemic.

Trunova also said that discounts cannot be expected sooner than in two or three years.

“There are preconditions for a decline in housing prices, which will probably be associated with a gradual decrease in demand. … When there were 20–25% unsold housing in regions with large volumes of construction, substantial discounts were in place to sell it, but it will only happen again in two or three years,” Trunova said.

End