Vilnius records 10% fewer new-home transactions than in July

Vilnius’ primary housing market recorded 451 aggregate transactions in August, around 10% fewer than in July and the same month last year, according to an Inreal review.

The weaker sales came alongside a sharp fall in new supply. Developers added 256 new objects to Inreal’s market monitoring, three times fewer than in July’s 780, but almost twice as many as in August last year. Total supply fell 3%, from 6,911 to 6,708 units, although it remained about 22% higher than a year earlier.

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Compared with the past few months, the share of economy-class housing sales decreased, while the share of mid-market sales increased.

Inreal said the market had been receiving roughly 100 more apartments each month than it sold over the past year. Its primary-market balance indicator consequently rose from 0.98 to 1.20. Prices also moved unusually actively in both directions, with 409 increases and 374 reductions recorded in August.

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The scale of the price corrections stood out in August. Prices were not only increased, but also reduced quite actively.

Annual price growth remained strong. Economy-class homes cost about 3,407 euros per square metre, unchanged during the month, while mid-market homes cost 4,713 euros, down 1%. Premium homes averaged 7,628 euros per square metre, lofts 3,565 euros, and townhouses 2,430 euros. Annual increases reached about 9% in the economy segment and 14% in the mid-market segment.

Kaunas showed a different pattern, with 148 sales in August, about 80% more than in July and August last year. The city added 268 new objects to its monitored supply, taking the total to 2,151 units, though only 1,351 were vacant. Inreal’s Tomas Sovijus Kvainickas said supply growth was meeting buyer demand, while rising prices and active sales pointed to sustained demand for new housing in Kaunas.

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The Kaunas market currently shows very clear demand potential. Supply is growing, but its increase is not excessive and largely meets buyers’ needs.