The Bad Bank Pulls Housing Prices Down by Selling 3 for 2
Sareb has taken a clampdown on the pricing strategy and in the last months got under way various campaigns of great deals in order to speed the sales up. The last big offer imitates the supermarkets in order to call attention of the clients to the most basic products.
The company chaired by Belen Romana gives possibility of buying lots of three or two properties with additional discounts and the ones already applied exceed 50%. It sells three dwellings at the price of two and in case of purchase of two, the third is available for half of its price.
Sareb has planned the step together with Novagalicia – one of the entities that has transferred the toxic assets to it and that has been granted to Banesto recently. Not only is it going to manage the commercialization, but also it included some of its houses to the project. In total, the portfolio represents 1.100 properties scattered all over the country. The list shows a thousand of homes priced from 10.600 Euros, row houses from 41.700 Euros and rural properties from 2.321 Euros on.
According to the purpose of the campaign started in mid December and foreseen to be valid by the end of January is to sell the properties bearing the same price with a discount of 25% each. If the values vary, both will be reduced “in a way that the discount amount is equal to 50%” of the lower price.
In case of the three-unit acquisition, Sareb and Novagalicia reserves that at least one of them must be cheaper than the other two. The discount is similar for the three and it cannot exceed the value of the cheapest house. (…)
The 30% Fall in the Recession
According to the date made public by the Valuation Society yesterday, the housing prices depreciated at the end of the fiscal year 2013 by 7.8%, marking the most significant drop-off since the crisis had begun. Since the real estate bubble burst in 2007, the accumulated decline reaches 30%. After three years of the slump, the price for a square meter is equal to 2.039 Euros. (…)
In the meanwhile Sareb continues to rectify the transfer valuations. Yesterday it informed about the return of 1.95 million Euros to Caja España-Duero (Ceiss) (…). It has already revised the portfolios of Bankia, Catalunya Banc and Banco de Valencia in the last months involving superb amounts.
Source: El Economista