This collapse was the result of a sharp reduction in average dollar wages of registered private sector workers
He real wage index in terms of square meters reflected in May a 40% reduction for new departments and of 42% for used, according to the Real Estate Market Report and Real Salary Index carried out by the Institute of Economics of the Universidad Argentina de la Empresa (UADE).
This drop was the result of a sharp reduction in the average wages in dollars of registered workers in the private sector (-40.6%) and a slight reduction in the prices of new units (-1.1%).
According to the work on the May indicators, the real wage index In terms of square meters, it presented the lowest value since the index began to be prepared: 35.9 for new apartments and 36.9 for used ones.
In year-on-year terms, the real wage index shows a reduction of 40% for new departments and 42% for used ones.
The simple average of the offer price of the square meter for the set of neighborhoods historically surveyed by UADE such as Recoleta, Palermo, Belgrano and Nuñez, it was $ 3,697 (-1.0%) for new departments and $ 3,336 (+ 2.3%) for used ones.
On average 6.67 wages were needed to acquire a square meter of new housing and 5.87 to buy the same of a used home, in the neighborhoods historically surveyed by UADE.
Prices for the “brand new” segment were around US $ 2,731 (Balvanera) and US $ 3,913 (Belgrano), while for the used segment the values ranged from US $ 2,242 (Balvanera) and the u $ s3,474 (Palermo).
Thus, the behavior of these variables implied that, during May, salary was able to buy only 15% of a new square meter in the northern area of the City of Buenos Aires, a proportion that is lower than that registered in the same month of 2019, when it reached 25%.
On average 6.67 wages were needed to acquire a square meter of new housing
The neighborhoods with the highest demand
Searching for properties with open air spaces increased in recent months due to the effect of quarantine, and the areas with the highest demand in the metropolitan area are The slaughter, Tiger, Pillar and Hummock, in Greater Buenos Aires, while in Ciudad they are Rocking horse, Belgrano and Palermo, according to sources in the real estate sector.
“Is a quarantine effect this of which people try to look for properties with terraces, open spaces, balconies; In general, the consultations that are seen are oriented towards units with open spaces, “said Mónica Chiaramonte, owner of MCH Broker Inmobiliario.
He pointed out that “in general, people have decided to move and are going to prioritize at this time having a land, terrace or balcony, in exchange for perhaps less covered area; they will not be as interested in having a covered area as an open space, that is it has prioritized in the mentality of the people these months “.
Chiaramonte maintained that “Palermo, Rocking horse, Belgrano are the most requested neighborhoods with buildings with balconies or terraces “.
Departments: demand was revived
According to the latest report on Real State from Free market, at the beginning of the quarantine there was a 48% drop in searches, but from April the situation was reversed and a growth of 56% was generated in May and 23.5% in June.
“Likewise, the context invited Buenos Aires residents to investigate new real estate proposals, revaluing open spaces: there are 42% of searches for properties with outdoor space, observing an increase of 4 percentage points compared to the same period of the previous year”, according to the survey of Mercado Libre.
The real estate advisor Daniel Zampone explained that “there is a before and after of the pandemic in our market; one of the main points to highlight is how an ordinary person looks at their next property; the entrance of light began to be more valued, the view to the river or avenues and, mainly, outdoor spaces such as the balcony terrace “.
Apartments: Now buyers are looking for terraces and balconies.
Meanwhile, the architect and real estate consultant Horacio Ludigliani assured that “there are already many queries to relocate homes in larger spaces and if possible with some green. Searches in closed neighborhoods increased.”
According to the Mercado Libre report, the most wanted areas in the AMBA are La Matanza, Tigre, Pilar, Morón and Palermo.
In the market for the sale of apartments, making a year-on-year analysis in dollars, a price drop of 4.5% was observed in CABA and 1% for the GBA; while houses for sale showed a more moderate fall, with a drop of 2% compared to last year.
In the rental market, the decrease reached 10% year-on-year, both in GBA and in CABA, but if only the first half of 2020 is analyzed, a rise of 5% is observed.
How much do properties in Zona Norte cost?
Although there is no sector that is not being hit by the coronavirus pandemic, the sector real estate It has already been falling for two years, and that is why with the sales rates so low, a revision of the values is being made.
At the end of June, the evolution of the apartment prices located in the northern area of the Buenos Aires suburbs.
According to a survey of the specialized portal Prop zone, the average price intended by owners of North Zone it is:
- For a two-room apartment of 50 square meters it is $ 118,500
- For a 3 room apartment of 70 m2, it is around $ 165,900
Thus, the average price of a two-room apartment in the North Zone is higher than that of a three-room apartment in the West-South Zone, since in the first region a 2-room unit is priced at $ 118,000, while in the municipalities of the west and south of Buenos Aires a department of 3 main rooms is around 116,000 dollars.
Regarding the average price per square meter, in the North Zone it is located at $ 2,368; while in the West-South Zone it is $ 1,751 per square meter.
Real estate prices by municipalities
By municipalities, in North Zone The units located in the matches of:
– Vicente López ($ 2,790 / m2)
– San Isidro ($ 2,717 / m2)
– San Fernando ($ 2,707 / m2)
– Tiger ($ 2,404 / m2).
Below average are:
– Escobar ($ 1,957 / m2)
– Pilar ($ 1,897 m2)
– Argentine Falklands ($ 1,721 / m2)
– San Miguel ($ 1,695 / m2)
– General San Martín ($ 1,628 / m2)
– José C. Paz ($ 1,506 / m2)
How to take advantage of the investment
Before the shot of the counted with liquidation and the Dolar blue, large numbers of people consider the possibility of taking advantage of foreign exchange they have in their portfolio to move to bricks or fields, since both urban and rural property prices measured in dollars are minors to those prior to the pandemic.
The question is to choose properly, and to know what are the tax effects on the future wealth tax and what happens in the event of a possible sale of said property, said Santiago Sáenz Valiente, from the SSV & Asoc study.
The first, given that it will surely be before the ownership of two properties, if they are both urban, will be to determine which of them will be permanent housing, said Sáenz Valiente.
For the specialist, it will surely be convenient to move, for example, to the house that he had planned to acquire as a weekend home, paying attention to the valuation rules in the Tax on Personal property and the situation regarding the future sales tax.
It is that the acquired house would be registered at its acquisition value, less amortization, which will surely have a much higher valuation than that house or apartment that it had in its assets for several years.
Must checkYes, said Sáenz Valiente, that the value does not exceed $ 18 million, today equivalent to u $ s257,000 at official price, but whose effective value would be, considering the price of the MEP dollar, of $ 28,270,000.
If the tax value is less than that $ 18 million, being a house exempt of the Personal Property Tax.
And in the event of a future sale, if the property acquired is registered as a dwelling house, no tax will be paid, not even the Property Transfer Tax (ITI), precisely because of its status as a permanent dwelling, said Sáenz Valiente.
In the event that it cannot be registered as a house, and is registered as a second property, the property purchased will remain taxed by Personal property the value of the deed plus the expenses of the notary public and others, less amortization, at the rate of 1.25% for the country’s assets, being a significant increase.
On the other hand, for the property that has been in its assets for a long time, its valuation would surely be based on the 2017 fiscal valuation updated by inflation.
At the time of the sale, as this property was acquired after January 1, 2018, when the law changed, a cedula tax of 15% will be paid.
The sale price in pesos, that is, dollars by official quotation, must be compared with the cost price in pesos, according to the deed, also at the official quotation if it had been purchased in dollars, said Sáenz Valiente.
And he warned that, so that there are no inconsistencies in personal declarations, the deed must be made in the same currency as the money that is saved by the taxpayer and was destined to the purchase of that property.
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