GFK's most recent report indicates that, During the second quarter of the year, only 25 new projects were added to the market. This is the lowest figure for a second quarter since 2009, when 16 projects entered the market, and is well below the average of 76 projects for the second quarters from 2011 to 2023.

At the end of the second quarter, total supply amounted to 44,018 units, which in terms of value is equivalent to 221 million UF equivalent to 221 million UF. This figure, measured in units, is 2.1% lower than in the immediately preceding quarter, and 6.9% lower than in the same period of 2023. The decreases are 0.7% and 7.1%, respectively, if measured in terms of amount.

Looking in more detail at the supply, of the 44,018 total units, 40,255 correspond to apartments, mostly concentrated in the communes of Santiago (22.6%), followed by La Florida (16.3%) and Ñuñoa (15.5%). The remaining 3,763 units correspond to houses, where the three districts with the highest participation are Colina (24.1%), Puente Alto (15.9%) and Lampa (15.3%). As for the months to sell out, these remain on the rise, standing at 28.8 months for the total market, In a market considered "healthy", this indicator should not exceed 20 months.

In both apartments and houses, the largest proportion of new housing supply is for immediate delivery, accounting for 19.8% of the total in apartments and 24.7% in houses, representing 19.8% of the total for apartments, and 24.7% for houses.

In terms of sales, in the second quarter, total sales were 4,578 units, or 21 million UF. This, in units, represents a drop of 4.9% with respect to the previous quarter, and 20.6% lower than in the same period of 2023. In terms of amounts, the decreases are 4.9% and 25.1%, respectively.

Of the total sales, 4,151 correspond to apartments, with the highest volume in Santiago (23.7%), La Florida (15.6%) the districts with the highest volume were Santiago (23.7%), La Florida (15.6%), Ñuñoa (15.1%) and La Cisterna (6.5%). As for houses, 427 units were sold, mostly concentrated in the districts of Puente Alto (17.3%), Colina (16.4%), Buin (14.8%) and Lampa (14.5%).

As with supply, sales were mostly concentrated in immediate delivery: 30.9% of the total number of apartments sold and 33.7% of the total number of houses sold were with immediate delivery.

In summary, at the end of the first half of the year, the real estate sector remains quite battered. There is a high - albeit decreasing - level of stock, due to the lack of incentives for real estate companies to develop new projects, and a very depressed demand, affected mainly by the difficulties in obtaining bank financing for the purchase, and the high real prices of housing.

However, there are interesting buying opportunities in new homes with immediate delivery for those who have liquidity and are subject to credit, However, there are interesting opportunities to buy new homes with immediate delivery for those who have liquidity and are subject to credit. This is the result of the important discounts that the different real estate companies are applying in order not to paralyze their sales and to be able to meet their financial commitments. These discounts are being offered directly to the price, or with flexible payment conditions for the foot.

Sebastian Mahave
Real Estate Analyst Fynsa AGF