More and more newly built flats are appearing on the market, in parallel to that the difference between the average prices per m2 of newly built and previously owned flats is decreasing, which leads to the closing of the gap between the two types – as included in ingatlan.com’s recent report, which also mentions that Győr-Moson-Sopron county is in a very exceptional condition on the countrywide market.
The prices of pre-owned properties can be compromised by the newly completed ones entering the market in the upcoming period – as reported in ingatlan.com’s recent analysis, which is based on more than 47 000 real estate advertisements.
The gap has surpassed an important level
In the first half of June, the average countrywide price per m2 in case of newly constructed housing was 441 000 HUF – in comparison, that of pre-owned properties was 337 000 HUF, which is a 104 000 HUF difference. On the other hand, the same gap was between 110-132 000 Forints in the first months of 2016, which has continually been dropping in the past three months. In Budapest, between the months of January-May, new properties were averagely 100-120 000 HUF more expensive, but the gap has decreased to 93 000 in the beginning of June.
László Balogh, ingatlan.com’s lead economy expert has commented that the gap between the average prices per m2 of new and previously owned housing has dropped below the 100 000 mark in the capital, which is considered a very important level. In addition, this happened in parallel with the continuous expansion of supply on the market of new housing. “In case of a 60 m2 flat which is situated in Budapest, this means that a new one averagely six million Forints more than its previously owned counterpart” – added the expert.
Looking further into the countrywide averages, significant differences can be observed between different counties’ cities that have county rights. In Győr-Moson-Sopron county, the average price per m2 of newly built housing was 338 000 HUF, which was only 39 000 Forints more than that of pre-owned housing. According to ingatlan.com’s expert, in case of such a moderate gap, it’s a more realistic choice to purchase the new and unoccupied properties. Ingatlan.com also reckons that Győr-Moson-Sopron county has an exceptional status on the Hungarian housing market. There, averagely 5.3 new flats were built per 10 000 people, which is by far the highest figure in the country: four times as muvh as the total countrywide average and the double of the figures measured in the capital.
Future expectations
The closing of the gap could lead to a possible turn of events. “This could put a stop to the price rise of pre-owned housing, thus further increases wouldn’t be expected anymore. However, if an oversupply would emerge on the market of new properties, the price of pre-owned ones could even decrease” – explained Mr. Balogh. In his opinion, it’s important to take into account that a significant drop in prices is not yet in favour of the participants on the market, including both owners and developers, because the clients of the companies who complete new housing investments create their funds to buy the new property partly from selling the previously owned one.
“The extension of the new home allowance program (CSOK) at the beginning of the year simultaneously increased both demands and prices. However, there’s still a lack of new housing on the market, because the available supply is still very limited. This discrepancy will possibly be solved by the new estates that are currently under construction, which can also put a pressure on prices depending on their total amount” – added the expert.
(Source: http://realista.hu/ingatlanpiac/egyre-kisebb-a-klnbsg-az-j-s-a-hasznlt-laks-ra-kztt/131015)
