Plunge in property prices nearing end
New tax measures may reduce trading, but dip in prices now coming to a stop
Zameen.com’s data shows that property prices in DHA Karachi remained stagnant; an increase of 0.52% was registered for 250-square yard plots while a decrease of 0.41% was seen for 500-square yard plots. PHOTO: FILE
LAHORE:
It seems the fall in property prices is coming to an end.
After registering a massive decrease in July - the month when the government’s newly-introduced tax measures came into force - data for August revealed that major housing societies saw little change in prices.
The recently-imposed tax on the real estate market had a negative impact on overall market activity and brought transactions, especially those of societies that are currently being developed, to a halt. Prices plunged and investors sought shelter from the government’s revised property valuation rates.
Despite host of measures, tax filers increase by just 10,745
However, in August, the top three markets of the country remained stagnant with slight dips in the price of a few housing societies.
While property buyers and sellers now have to pay higher amount of taxes on property transactions, the highest amount that a tax-filing buyer will have to pay in Pakistan is still less than the 4% tax he would have to pay for a property transaction in Dubai.
In Lahore, Islamabad, and Karachi, the property markets did not register any significant fluctuations after the new tax regime was introduced. The prices stayed steady in August.
Lahore
Statistics released by Zameen.com, an online property portal, suggested that despite significant lack of investment activity, prices in Lahore remained stable for the most part in August 2016.
DHA Lahore, which is the most popular investment option in the city, registered steady numbers for all plot categories during August, while no steep drops in prices were noted.
Bahria Orchard also bore the impact of the new taxes quite well; both 10-marla and 1-kanal plots showed insignificant price drops of 0.02% and 0.23%, respectively.
An increase of 0.55% was recorded for 1-kanal plots in Bahria Town, while a negligible drop of 0.52% was observed in the 10-marla plot category. LDA Avenue One registered steady prices for the most part while Wapda Town showed a controlled drop in values.
Islamabad
Islamabad’s realty sector also showed stability during August 2016.
In various localities, negligible dips were seen in property prices, but no major fluctuations were observed. DHA Islamabad remained an area of special interest for both local and overseas investors and registered stable numbers, with a mere 0.66% increase in the value of 1-kanal plots.
In Bahria Town, price drops of 0.15% and 1.33% were observed in the 10-marla and 1-kanal plots categories, respectively. Meanwhile, Sector F-11 and Sector E-11 clung on to mere stability during August 2016.
Karachi
Zameen.com’s data shows that property prices in DHA Karachi remained stagnant; an increase of 0.52% was registered for 250-square yard plots while a decrease of 0.41% was seen for 500-square yard plots.
Real estate market: Karachi, Lahore show impressive growth in first half
DCK, whose performance has been remarkable since its launch, registered controlled drops in property values during the month. BTK and Gulshane Iqbal, on the other hand, posted slight increases in the values of 500 square yard and 250 square yard plots.
In spite of the legal issues that occasionally affect sale-purchase activity in BTK and the imposition of increased taxes, prices in the locality continued to look up, as the value of 250 square yard plots in the locality increased 1.15% during August 2016.
Published in The Express Tribune, October 2nd, 2016.
It seems the fall in property prices is coming to an end.
After registering a massive decrease in July - the month when the government’s newly-introduced tax measures came into force - data for August revealed that major housing societies saw little change in prices.
The recently-imposed tax on the real estate market had a negative impact on overall market activity and brought transactions, especially those of societies that are currently being developed, to a halt. Prices plunged and investors sought shelter from the government’s revised property valuation rates.
Despite host of measures, tax filers increase by just 10,745
However, in August, the top three markets of the country remained stagnant with slight dips in the price of a few housing societies.
While property buyers and sellers now have to pay higher amount of taxes on property transactions, the highest amount that a tax-filing buyer will have to pay in Pakistan is still less than the 4% tax he would have to pay for a property transaction in Dubai.
In Lahore, Islamabad, and Karachi, the property markets did not register any significant fluctuations after the new tax regime was introduced. The prices stayed steady in August.
Lahore
Statistics released by Zameen.com, an online property portal, suggested that despite significant lack of investment activity, prices in Lahore remained stable for the most part in August 2016.
DHA Lahore, which is the most popular investment option in the city, registered steady numbers for all plot categories during August, while no steep drops in prices were noted.
Bahria Orchard also bore the impact of the new taxes quite well; both 10-marla and 1-kanal plots showed insignificant price drops of 0.02% and 0.23%, respectively.
An increase of 0.55% was recorded for 1-kanal plots in Bahria Town, while a negligible drop of 0.52% was observed in the 10-marla plot category. LDA Avenue One registered steady prices for the most part while Wapda Town showed a controlled drop in values.
Islamabad
Islamabad’s realty sector also showed stability during August 2016.
In various localities, negligible dips were seen in property prices, but no major fluctuations were observed. DHA Islamabad remained an area of special interest for both local and overseas investors and registered stable numbers, with a mere 0.66% increase in the value of 1-kanal plots.
In Bahria Town, price drops of 0.15% and 1.33% were observed in the 10-marla and 1-kanal plots categories, respectively. Meanwhile, Sector F-11 and Sector E-11 clung on to mere stability during August 2016.
Karachi
Zameen.com’s data shows that property prices in DHA Karachi remained stagnant; an increase of 0.52% was registered for 250-square yard plots while a decrease of 0.41% was seen for 500-square yard plots.
Real estate market: Karachi, Lahore show impressive growth in first half
DCK, whose performance has been remarkable since its launch, registered controlled drops in property values during the month. BTK and Gulshane Iqbal, on the other hand, posted slight increases in the values of 500 square yard and 250 square yard plots.
In spite of the legal issues that occasionally affect sale-purchase activity in BTK and the imposition of increased taxes, prices in the locality continued to look up, as the value of 250 square yard plots in the locality increased 1.15% during August 2016.
Published in The Express Tribune, October 2nd, 2016.