new build

ACCORDING to an article in Le Figaro this week, the construction of new housing has plummeted by 28.2% between April and June while the number of applications for planning permission that were granted fell by 15.5% according to figures from the Ministry of Ecology.

The figures indicate that the outlook is bleak.

In the second quarter of 2008, new build construction fell by 28.2% to 79, 220 units between April and June, and planning was granted to build 115,880 units across France.

REUTERS - A French Government memo out today reports a drop of 28% in the sale of new houses in france for the first quarter.

The stock of new properties for sale in france is at an all time high according to the french Ministry for Ecology and Energy.

Just over 26,700 news builds were sold in France in the first quarter, 27.9% less that the same period in 2007.

From the second quarter 2007 to the first in 2008 the number of new houses sold was slightly more than 117,000, a drop of 10.3% on the same period a year before.

THE price of new houses could experience a bigger reduction than older properties this year according to economists at HSBC, report Capital.fr.

In a recent memo HSBC say that "the drop in prices is likely to be greater than anticipated due to oversupply and a decrease in household spending power".

Readjusted, HSBC's expectations now show a decline of 3.5% in the first half of 2008 for new builds, against only 1% for older properties.