Turkish house sales surge in June, rebounding with cheap loans

[ISTANBUL] Turkish house sales leapt nearly 210 per cent year-on-year to 190,012 properties in June, official data showed on Tuesday, rebounding with the help of cheap loans as the economy began to revive after Turkey eased coronavirus containment measures.

It was the highest monthly level of sales since the record level in December, when more than 202,000 houses were sold as the sector benefited from interest rate cuts.

Sales dropped sharply in April and May under the impact of the pandemic, Turkish Statistical Institute (TUIK) data showed.

"The low cost support by our state banks showed its impact in the housing sector," Finance Minister Berat Albayrak wrote on Twitter after the data was released, noting that it was the highest level of June sales ever.

At the start of June, state banks extended new loan facilities with reduced rates and real estate developers launched campaigns to help kickstart the economy as it emerged from the coronavirus lockdown.

The Turkish Central Bank has cut its key rate to 8.25 per cent from 24 per cent a year ago, but held it steady last month.

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Mortgaged house sales surged nearly 1,300 per cent to a record 101,504 houses in June, TUIK said, making up more than half of total sales and nearly doubling the previous record level in September.

In the first half of the year, house sales were up 23.5 per cent.

House sales to foreigners dropped 38.1 per cent to 1,664 in June, the data also showed.

REUTERS