RIO DE JANEIRO, BRAZIL – Chile’s housing market is slowing rapidly, due to the coronavirus pandemic. The average price of new apartments in Greater Santiago rose by 1.7% during 2020, sharply down from the previous year’s 7.32% growth. Yet on a quarterly basis, house prices increased 3.98% in Q4 2020.
Demand and supply are falling sharply. During 2020, new home sales in Greater Santiago area plummeted by 28.2% y-o-y to 22,672 units, following a 6.9% decline in 2019, according to the Chilean Chamber of Construction (CChC). Likewise in 2020, the total number and area of residential buildings authorized fell by 25.7% and 28.5% y-o-y, respectively.
Rents, rental yields: moderate yields in Santiago at 4.1%
Santiago apartment costs are low at around $3,256 per sq. m.