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Keenest Demand in Countryside Market is for Land Plots without Contracts

2013 november 06

According to the St. Petersburg Realty Consulting Center, over 2050 sites in the market of suburban cottage villages of St. Petersburg and Leningrad Region were sold in the third quarter 2013. That was 15% more than in the same quarter of the last year. Most of the sales were those of land plots without construction contracts; as compared to the same period of 2012, the number of such transactions has increased by 36%. According to a quarterly review prepared by the St. Petersburg Realty Consulting Center, at the moment there are 381 suburban cottage villages and 35 stages of the already existing projects in the countryside market. This means about 38,800 housing estates and land plots. In 54% of the villages, only land plots without a house construction contract are offered. In 36% of the projects, buyers are offered land plots both with a contract and without it. Eventually, in 90% of the villages a land plot without a contract can be bought. “Demand breeds supply; it is land plots without a construction contract that are the most popular product among buyers,” Olga Trosheva, Manager of the St. Petersburg Realty Consulting Center, explains. “The demand for such land plots has increased by 2% as compared to the second quarter of this year and by 36% as compared to the third quarter of 2012. At the moment, land plots without a contract make 77% of the transactions in the countryside market. About 16% of the purchases are row houses. And only in 7% land plots are bought with a construction contract or a finished housing estate is bought. The volume of sales in the countryside market remains at the same level as in the second quarter of the current year; about 2050 land plots and housing estates have been sold. Most of the sites bought in July through September ate situated within 30 to 40 km from St. Petersburg.” The high demand for land plots without contracts has resulted in such supply appearing even in projects where solely plots with a construction contract used to be sold. More and more affordable offers appear in the market, even in the northern area, which is preferred by the buyers. Thus, Vsevolozhsk District is no longer the prerogative of the high price ranges. Many developers want to accelerate sales; therefore, they quote prices a little lower than those of their competitors.

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