The French resale property market has remained positive in the year to the end of Q2 2011. Sales of existing property were 812,000, a 16% rise on the previous year as transactions return to the ‘best years’ of 2003-2007, according to data in the French Property Market Report by Notaries de France.

Prices in the resale market have also remained positive with an average increase of 7.8% in the year to the end of Q2 2011 as apartment prices rose 10.3% and houses by 5.3% with a quarter on quarter rise of 2.1% and 0.1% respectively.

The report stated: “ Paris is displaying a price development quite distinct from the rest of the country. The annual rise in apartment prices in the capital has reached 22.5% in Paris (central) and 15.1% in its closest suburbs. In the provinces, however, the annual rise in prices is both more moderate and less contrasting between apartments and houses. Indeed, house prices actually rose by more than apartment prices (4.9% compared to 3.8%).

The new-build market however is not as positive as it has seen a significant reduction in both transactions, a fall of 22.6% between Q2 2010 and Q2 2011, and with new instructions seeing a decrease of 8.6%.

The report stated: “Twelve regions are experiencing a simultaneous fall in sales and new instructions. This has led to a moderate rise (1.5%) in the number of dwellings placed on sale (68,100) and the average sale period has risen from seven to eight and a half months. This increase in stock applies in particular to île-de-France and the Rhône-Alpes region.”

Despite this average prices have risen despite the fall in sales transactions, with the average price of apartments sold rising by 7.7% in Q2 2011 and individual houses having risen by 1.8%.