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Housing prices fell in 3 of the 10 most expensive neighborhoods in Brazil in October

11/05/2013

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Indent value m² of Leblon and Botanical Garden in Rio and Jardim Europa , São Paulo state , is one more indicator that indiscriminate era of high prices came to an end

Vitor Sorano - iG Sao Paulo | 05/11/2013 00:00:57
  
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Leblon : expressive symbol of high real estate prices will fall off
The properties of three of the ten districts of Brazil are valued - slightly - cheaper . Symbols of skyrocketing real estate prices in the Brazilian market , which raised speculation about the existence of a housing bubble , Leblon and Botanical Garden ( in Rio ) and Jardim Europa ( in São Paulo ) , had a decrease in value of a square meter in October compared to September , according to the index Fipezap , which determines the amount requested by those who want to sell the property .

The more expensive m² Brazil remains the Leblon : R $ 21,886 . This value , however , fell 0.9 % in October , and is the lowest since May 2013. At the Botanical Garden, m² decreased 0.5 % to R $ 15,172 . In São Paulo , the price in Jardim Europa fell for the first time since April , to R $ 10,768 - 1% of the value of May.

"In these neighborhoods [ Leblon and Botanical Garden ] , which were suffering a significant appreciation , there is a price adjustment ," says Leonardo Schneider , vice president of SECOVI Rio , who falls in prices in the South Zone of Rio is punctual . " I think the price will maintain and grow the level of inflation . There was an adjustment that month [ October ] . "

Small but symbolic
Small and punctual , indents indicate a situation less alarming than a more complex scenario for the housing market , assesses Eduardo Zylbestajn , coordinator of the indicator .

" Although not significant falls , show a change of situation . The timing is not the same anymore we lived in rising everywhere , "he says .

In this new situation , says the economist, prices will vary more diverse , respecting the characteristics of each site . In the case of Rio, while it fell in Leblon and Botanical Garden - and, according to SECOVI Rio , in Copacabana ( -1.07 % ) - , prices rose in Gávea m² ( 0.4 % ) , in Lagoa ( 1.3 % ) and Ipanema ( 0.9 % ) , in the same Zone South

Also read : Brazil faces housing bubble , says Henrique Meirelles

" There will be increasingly dynamic localized dictating the pace of prices . And this also applies to cities . And this is normal, " says Zylberstajn , the Fipe . The unusual , he says , is an indiscriminate increase .

Closest inflation
The municipal performances also illustrate this diversity . In the 12 months ending in October , the m² in Curitiba appreciated 38.4 %, almost triple the average composed of 16 cities evaluated by Fipezap of 13.4 % . Already in Brasilia , the increase was 4.7% - about a third of the average.

Rio had a cumulative increase closer to the average - 14.7 % - but comes on a downward trend in the last three months, while the national trend is valuation . In São Paulo , the recovery of the property returned to accelerate slightly to 13.4 % in October from 13.3% in September .

Although far from the record achieved in recent years - in Rio , recovery reached 44 % per annum in June 2011 and in Sao Paulo , to 29 % in July of the same year - these indicators are still well above inflation over the period .

The National Index of Civil Construction ( INCC ) , measured by the Fundação Getulio Vargas ( FGV ) , was 8.08 % in October - up from the 13.4 % of Fipezap . The official inflation rate in the country, measured by the Consumer Price Index (IPCA ) , stood at 5.69 % in September .

To Zylberstajn , the Fipe , anyone thinking of buying property for investment should not rely on such significant intervals in the future.

" I do not recommend that people count on appreciation above inflation forever. "



Source : IG

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