Turkish state-run housing firm cuts prices 22 percent

Turkey’s state-run construction giant TOKI is cutting the prices of some new apartments and workplaces by 22 percent as a result of a persistent downturn in the housing market.

The reduced price will apply to buyers who have already signed deals to buy housing and started payments by the end of last year, Karar newspaper reported on Tuesday citing a statement by TOKI.

Turkey’s housing market is in a slump after an overheating economy and currency crisis last year led to a surge in interest rates and inflation. Sales of homes fell an annual 18 percent to 78,450 units in February, the Turkish Statistical Institute said on Monday, continuing a recent decline. Sales via mortgages represented just 11 percent of total sales.

The offer by TOKI could help 210,000 buyers of homes and workplaces, Karar said. It is valid between March 21 and April 19. Applicants must still have 25 percent or more of the purchase price of the property left to pay, it said.