The Eurobank Property Services (EPS) Residential Index of Romania repeated a small increase in the second quarter, in a similar manner with the first quarter of 2013, raising the possibility of a temporary positive trend in the national market, although these two sliding quarters could well be caused by a seasonal fluctuation, a press release of the subsidiary of Eurobank group informs. This appears to steadily continue the small fluctuations around a gently rising price level that has been suggested by the index starting from the middle of 2011.
In the one year period, from the second quarter of 2012, the national price index fell moderately, by -1.5 pc in average. During the 5 year period, which starts from the peak of the market registered in mid-2008, Romania residential prices have been declining at an average annual rate of -9.2 pc, totalling a reduction of the price of Romanian homes of -38.3 pc. Prices in Central Bucharest reduced during the quarter by -4.8 pc, continuing the similar reductions of the previous quarter. On the other hand, in Bucharest Ring prices rose by 4.4 pc, achieving stability for a whole year with a marginal fall of -0.7 pc since the second quarter of 2012. Prices in Ilfov County continued to slide, totalling a -8 pc reduction during the last four quarters.
Dunare & Sea and Muntenia lead the price increases among the divisions, with rises of 6.5 pc and 5.2 pc respectively. Impressively, South, West and Moldova continued recording residential price increases for the second quarter in a row, keeping the lead in year-on-year price rise over other divisions at 4.5 pc, 2.7 pc and -0.2 pc respectively. Moldova remains the national division with the smallest average price drop rate during the last five years, at -5 pc per annum or a total price reduction of -22.5 pc since the peak of the market recorded in mid-2008.