'Slowdown begins' as house prices decelerate

21st October 2005, Comments 0 comments

21 October 2005, MADRID — House prices have shown the lowest rise for three years, going up 13.4 percent in the past 12 months.

21 October 2005

MADRID — House prices have shown the lowest rise for three years, going up 13.4 percent in the past 12 months.

New figures for the average price per square metre for new and 'used'  homes between September 2004 and last month showed a slow-down had begun in the booming Spanish property market, the government claimed.

Rafael Pacheco, director general of the Spanish housing ministry's 'political architecture' section, said the rise confirmed the long-predicted slow-down had started.

He added that the government's efforts to bring a cool-down in the housing market had shown results.

Spain's Socialist government fears the backlash if the property bubble bursts with millions owing tens of thousands of euros which they will not be able to pay back. 

The price of 'protected' or state properties rose 5.7 percent in the past year, while the general index of property prices went up by 13.2 percent during the same period.

In the past three months, house prices even showed a dip in some regions, going down 0.7 percent in Cantabria in the north and 3.6 percent  in Extremadura in western Spain.

And in Andalusia, Aragon, the Canary Islands, Castilla y Leon, Madrid, Murcia and Navarra, prices went up by less than the national average of 1.5 percent.

[Copyright EFE with Expatica]

Subject: Spanish news

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