Residential Sales in Brazil’s São Paulo City Jump to Year High

By Nelson Belen, Contributing Reporter,

SÃO PAULO, BRAZIL – According to just released data from the São Paulo Housing Union (Secov-SP), sales of new residential properties in Brazil’s largest city, São Paulo, totaled 1,717 in September. The volume represents a 59.3 percent increase over the total units sold in August (1,078 units) and 23.3 percent above September of last year (1,392 units).

With these figures, September was the best month of the year for new residential sales in the commercial metropolis. The largest volume of sales in the month was seen in two bedroom properties ranging between 45 and 65 square meters, priced between R$225,000 and R$500,000.

Relatedly, data from the Empresa Brasileira de Estudos de Patrimônio (Brazilian Property Studies Company) (Embraesp) indicated that São Paulo city showed a significant increase in the number of new residential units hitting the market in the month of September. September showed a total of 2,165 new residential units launched, 83.9 percent higher than August (1,177 units) and 66.9 percent higher than September 2015’s figure (1,297 units).

Despite September’s favorable numbers, when drawn out over the nine-month January to September period for 2016, São Paulo City recorded 10,817 new residential units sold, 21 percent less than the total sold in the same period of 2015 (13,698 units).

Similarly, during the nine-month period, the number of new residential units hitting the market was down, with 10,172 new residential units launched, 27.9 percent down from the same period last year, when 14,099 units were opened.

For Secov-SP’s chief economist, Flavio Amary, September’s turnaround in sales and units launched indicates a new positive outlook among city residents and entrepreneurs. “However,” Amary added in a statement, “we insist on continuing to lower interest rates, so that the real estate industry can resume their normal level of activity and may contribute to the generation of employment and income and, consequently, with economic recovery.”