The average Sale Price (ASP) for residential properties has fallen consistently over last 3 months, to its current level of USD 836 [GEL 1829]. ASP rose to a year-high of USD 900 [GEL 2159] in December 2015 and fell to a year-low of USD 836 [GEL 1940] in August 2015 and June 2016. Appreciation of GEL since February 2016 exerted downward pressure on prices expressed in local currency decreasing at faster rates compared to prices in USD.
Sales Price Index for residential property reached 1.034 in June 2016, which represents 0.5% increase MoM and 1.8% decrease YoY. Therefore, observed decrease of ASP for last month is reflection of lower quality of supply rather than deterioration in market fundamentals.