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The Number of New Cottage Settlements on Sale Goes Down

2014 may 26

According to the Petersburg Real Estate Consulting, at the beginning of the second quarter of 2014, sales of suburban sites in St. Petersburg and Leningrad Region started in 12 new cottage settlements and in one new stage of an existing settlement. This is about 800 sites, which is 63% fewer than for the same period of the last year.  

According to the Petersburg Real Estate Consulting, the number of new settlements on sale has decreased markedly – by 38% – as compared to the last quarter of the last year. 12 new projects plus one stage of an existing settlement, that is about 1,100 sites, have been offered in the market.  In 2013, for the first quarter of the year, 63% more new sites were offered than in the current year. ‘Developers’ activity is decreasing,’ Olga Trosheva, Head of Petersburg Real Estate Consulting, says. ‘While formerly new players often entered the market, today it happens much more rarely. Many projects of non-professionals are being closed and suspended.  At the same time, strong players offering quality products increase their share in the market.’ 

The levelling trend in the structure of supply of new projects by districts continues. While previously new projects were mainly located to the north in Leningrad Region – in Vsevolozhsk, Vyborg and Priozersk districts, today the share of new projects to the south – Tosno, Lomonosov and Gatchina districts – increases. Thus, in the first quarter of 2014, 54% of the projects that entered the market were located to the south.  And only 31% of new settlements are in the northern areas.

Besides, developers offering projects in the high-price segment – in the business and elite classes – are becoming more active. Thus, according to the Petersburg Real Estate Consulting, in the first quarter, the supply of new projects of these classes was 25% of all settlements that entered the market for that period. At the same time, in the previous quarter their share amounted to just 6% of the projects offered for sale. An offer of a number of projects in the high-price category was announced for the period from April to June. At the same time, due to the specifics of the high-price segment, there will be only small volumes of supply in each of the projects. 

As of the beginning of the second quarter of 2014, sites in 340 cottage settlements and 47 additional stages of the existing settlements, i.e. about 35,100 housing estates and land plots, are on sale in the market of St. Petersburg and Leningrad region. There are 103 settlements and 16 stages of the projects already existing in the market within 30 km from the city – in the permanent residence area.  This means about 8,400 housing estates and land plots. 

Most of the cottage settlements are still concentrated in Vsevolozhsk district – 31% (of the number of settlements), in Lomonosov district (20%) and in Vyborg district (14%). In 80% of the settlements, a land plot can be bought without a contract. Settlements, where finished cottages or those under construction (land plots with the mandatory contract) are offered, make 20%.

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