Real estate sales in Kuwait dropped significantly during August following an exceptionally strong activity during the month before, an economic report issued by the National Bank of Kuwait (NBK) has indicated.
A total of 505 sales transactions were registered at a value of KD 97.6 million. Unit sales and value were down 41 percent and 57 percent from July respectively, NBK added.
The first eight months of 2006 saw average real estate sales increase by 6.3 percent in value and 2.8 percent in number compared with the same period last year, NBK noted.
Most of the increase in sales occurred in the apartments and commercial sector, it added.
The average price of registered transactions during the eight months rose by 2.8 percent for apartments and commercial property, while residential property saw a 5.8 percent decline compared to the same period last year, it continued to say.
According to NBK, Savings and Credit Bank (SCB) loans experienced a slowdown in August with the number and value of loans approved by the bank declining by 16 percent and 10 percent, respectively, after strong growth in the previous month.
SCB approved 415 loans in August, compared with a monthly average of 388 in 2005.
Most of the drop was in loans for existing homes, which saw the value of loans approved drop by 37 percent, NBK added.