Sales and launches in the São Paulo real estate market have increased in September

The market in Brazil’s largest city closed the month of September with an expansion of launches and sales, according to a survey conducted by the Housing Union (Secovi-SP).

The scenario indicates resilience, despite the environment of higher interest rates and proximity to the elections, which usually cause some consumers to postpone deals.

The number of new housing starts in September increased by 5.9% year-on-year to a total of 8,225 housing units.

In turn, registrations in the last 12 months (Oct. 2021 to Sept. 2022) grew by only 1% compared to the previous period, totaling 83,993 units.

The market for medium and upscale units was better this year, with a growth of 12% in the last 12 months (48,100 units).

The economy segment (within the green and yellow house) saw a 10% decline to 35,900 units.

DISTRIBUTION

September sales were up 22.9% year-over-year to 6,255 units.

In turn, sales for the 12 months ending in September grew 6% from the previous 12 months to a total of 69,812 units.

In financial terms, sales increased 17.5% this month to R$2.775 billion. In 12 months, sales increased by 2%, reaching R$35.515 (US$6.5) billion.

The indicator that measures the sales pace (units sold in relation to the total number of new releases in the period) was 8.6% in the month, down 0.5 percentage points year-on-year.

The 12-month cumulative sales velocity fell to 51.1%, a decrease of 6.1 percentage points.

INVENTORY

The capital city of São Paulo ended September with an inventory of 66,646 units for sale, taking into account properties in the planning stage, under construction, and newly built. The amount is 30.5% higher than a year earlier.

At the current sales pace, it would take 9 months to transact the entire inventory of properties in the low-price segment and 13 months for apartments in the mid-and high-price segments.