KUWAIT CITY, Aug 4, (KUNA): Sale volume of domestic property, namely the investment sector, continued falling in Q2 2016, by 11 percent, compared to the year’s fi rst quarter, according to Kuwait International Bank (KIB). These sales, as compared to Q2 2015, fell to a larger scale on yearly basis, 31 percent, amounting to KD 664 million, the KIB said in a report issued on Thursday. Investment sector’s sales moved down 17 percent on quarterly basis, 45 percent on yearly basis, whereas housing sector’s sales rose by one percent in contrast to the year’s previous quarter, however they remained less by 31 percent of sales value recorded in 2015.
Average prices in the investment sector fell by 13 percent, while those in the housing sector maintained the levels since the previous quarter, posting a one percent rise, the report said, revealing that performance in the current year’s quarter was affected with onset of the summer holidays’ season, in addition to the recent fasting month of Ramadan.
The KIB added that the number of overall transactions climbed two percent, on quarterly basis, amounting 1,268 deals. But despite this rise, the index level remained lower by 24 percent compared to that recorded in the past year’s same period of time. Index of the registered transactions in the investment sector noticeably climbed, by 28 percent, as compared to the previous quarter.
However, this rise coincided with decline of prices in the sector. Sales in the real-estate sectors decreased, on quarterly basis, except for the professional and housing sectors that maintained levels of the previous quarter. Meanwhile, all sectors posted decline in sales on yearly basis, except for the commercial and professional ones.
KIB said in the report that housing sales largely remained unchanged, inching up by one percent on quarterly basis, reaching KD 285 million. However they remained very much different from those registered in the past year’s same period, by 30 percent. Number of transactions in the investment sector fell by fi ve percent on quarterly basis, 31 percent on annual basis, posting 798 deals.
Meanwhile, the average deal value on quarterly basis climbed by seven percent reaching KD 357,000 per deal — thus maintaining the levels recorded in 2015. Sales in the investment sector dropped by 17 percent on quarterly basis, reaching KD 2311 million — much lower than those registered during the same period of 2015 — 45 percent.
This sector witnessed relative activity, where the dealings climbed by 28 percent on quarterly basis, reaching 418 transactions, while the average deal value decreased by 35 percent on quarterly basis and 45 percent on annual basis.
The commercial sector’s sales dropped by 29 percent on quarterly basis amounting KD 125 million. The sales on yearly basis climbed by 22 percent. Number of the commercial sector transactions amounted to 25, falling by 24 percent on quarterly basis and 22 percent on yearly basis. Average decline of the deal value amounted to six percent, higher than that recorded last year — by 56 percent.