Brazil: Real estate sales grew 16.2% in May in São Paulo City -Secovi

RIO DE JANEIRO, BRAZIL – The real estate market in São Paulo City had an increase in property sales in May, signaling the sector’s resilience in the face of rising inflation and interest rates.

On the other hand, the launches decreased. The data are part of a survey by the Housing Union (Secovi-SP) brought to Broadcast, Grupo Estado’s real-time news system.

The survey registered the sale of 6,838 new residential properties in May, which represents a growth of 16.2% compared to the same month last year.

In the last 12 months (June 2021 to May 2022), sales totaled 69,614 units, equivalent to an expansion of 14.9% compared to the previous 12 months (June 2020 to May 2021).

The survey also pointed out the launching of 7,631 apartments in May, a volume 9.6% lower in the same comparison base. In 12 months, the launches totaled 84,352 units, an increase of 16.2%.

Despite the higher number of sales, there was a reduction in the pace. The sales speed in May was 9.8%, lower than the 11.5% registered a year before.

The speed in the last 12 months was 53.7%, below the 57.8% of the previous 12 months. The indicator considers the total properties sold compared to the total inventory available in the period.

The São Paulo capital ended May with a stock of apartments (units in the planning stage, under construction, and recently delivered) of 62,675 units available for sale, a jump of 38.8% compared to May 2021, when there were 45,154 units.

This jump is due to the record launches last year, which have slowed down in recent months.

Secovi-SP estimates that the launches should reach 65,000 to 70,000 apartments in 2022. In the case of sales, the forecast is that they will be between 55,000 and 60,000 units.

GREEN AND YELLOW HOUSE

The properties framed in the Green and Yellow House social program (CVA) represented 55% of the units sold and 52% of the units launched in May.

These properties have the highest demand and showed a sales speed of 13.2% in the month, staying above the real estate market average.

Since last year, the price limit for properties in the Green and Yellow House program was updated to compensate for the increase in material costs and the need for companies to raise the final price of the houses.

As a result, the ceiling rose to R$264,000 in São Paulo City, helping deflate new projects.

With information from Estadão