Further gloom for Portuguese housing market
Tuesday, 21 June 2011 12:03 PM
The gloom descending over the Portuguese housing market has intensified with figures suggesting a steady deterioration in all major conditions.
Pricing, activity, sales and expectations indicators have continued to weaken, according to the May RICS/ Ci Portuguese Housing Market Survey.
In addition, the composite National Activity and National Confidence indices both fell by 7 points to -39 and -60 respectively.
At the national level, RICS says, results show that price declines continue to be driven principally by falling demand. Rising supply is not presently an issue as new vendor instructions have been falling since December.
However, overall price falls have masked regional variation. Falls accelerated in Lisbon and Porto, but slowed in the Algarve.
Josh Miller, RICS senior economist, said: “The Portuguese housing market can be characterised by falling prices, falling activity and depressed confidence.
“The main factor weighing on prices is weakening demand; rising supply is not really an issue.
“Although the national picture looks quite bleak, the survey results highlight some promising regional developments during May with both new enquiries and agreed sales in Porto and the Algarve falling at a slower pace than in April.”
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