The real estate market has slowed down, but the situation is still good


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Somewhat of a stop has halted the momentum of the current year, but according to Duna House’s data, the movements on the real estate market can still be considered strong. The numbers of May 2016, indicating 11590 transactions, are 3% lower than that of 2015, but 40% higher than two years before, which still shows the spectacular progress of the market.

The numbers of May might have been contributed to by the so-called long weekend and the days off around that. This year, 57 500 properties have switched owners, which is a figure 3% bigger than the numbers measured in the same time last year. Two years ago, only 37 000 transactions were finalised, while in the worst year, in 2011, only 32 500 of them were made up to the sixth month countrywide.

The Demand Index is constantly falling, and by May, it has reached a two-year low, dropping to a value of 80. While in the meantime, circulations haven’t – or at least not significantly – decreased, this could mean that buyers are already familiar with the current price environment and with the processes expected, and only those enter the market for whom it is urgent to buy a property – the rest rather stay idle.

Average Prices

apartmentsIn May, panel flats were sold with an average price per m2 of 165 000 HUF in Western Hungary, and 157 000 HUF in Eastern Hungary. The same category was sold with an average price per m2 of 274 000 HUF in Pest, and 323 000 HUF in Buda. Brick-built flats were bought with an average of 182 000 in the East, and 206 000 HUF in the West. Flats of the same category in downtown Budapest with an average price per m2 of 602 000 HUF – the same average was 475 000 HUF in Buda in general, and 346 000 in Pest.

Most popular areas

Following the “dethronement” of last month, District XIII. was again the most popular amongst those who are planning to buy in the capital. It is worth mentioning that the earlier leader, District XIV. fell behind with only 0.1%, with an inquiry rate of 17.9%. It’s followed by (also with a 0.1% difference) the quickly rising District XI. The trio is followed by another one, with a 3% difference, Districts II., VI. and VII.

Bargain

In case of family homes, buyers have only bargained for 8% of the original prices countrywide, while it was also enough earlier to decrease prices by 2-3% to call the attention of potential buyers. From the prices of flats, they managed to cut them down by an even smaller margin, only 4%. An exception is panel flats in Budapest, where this amount was even smaller, only 3%. The reduction averages of brick-built flats are particularly interesting, because it ended up around 0, which means that initial prices were made higher along the selling process.

Groups of buyers

38% of buyers in the capital are still purchasing properties as investments, with an average price of 24.9 million HUF in May. 22% of Budapestian buyers were first-time purchasers, they were looking for flats with an average price of 18.6 million. The average size of properties bought by both groups was 57 m2. 17% of buyers said that they wanted to move to a larger home. They bought properties of 110 m2 in size, with an average price of 34.4 million. In the country, almost a third of the buyers wanted a bigger home, also making up the biggest group. In average, they bought flats that have a total area of 112 m2, for 19.7 million HUF. Almost a quarter of them stated that they’ve bought housing for the first time, and they averagely bought flats of 75 m2, for around 12.1 million. 22% of the buyers were investors in the country, with an average spending of 11.2 million.

bungalow-houstonSellers

In case of transactions of the capital, nearly half of the sellers have admitted that they intended to move into a larger property. They got rid of their averagely 55 m2 flats in size, for 20.9 million. 17% of sellers sold inherited properties for an average of 26.5 million, while 15% said that they were moving into a smaller home. In the country, the same three groups could be recognised, as they had the same share, around 27%. In these areas, those who wanted to move into larger homes, sold their flats of 66 m2 in average, while the same average size was 120 m2 in case of those who intended to relocate to a smaller one. Heirs could averagely count with an income of 9.4 million.

Countrywide differences

40% of real estate sold in the countryside was between 40-60 m2 of size, 18% of them were between 60-80 m2, and, except for 10%, the rest were all bigger than that. While in a years’ time, the percentage of the price range between 100 – 150 000 HUF/m2 has decreased, still, 29% of transactions were of that category. In the same manner, the percentage of 200 000 HUF/m2 properties has increased greatly. The price rise is also apparent in Pest county, a year ago only 11% of total transactions were realised in the 250 000 HUF/m2 range, whereas this year it went up to 25%.

The comparison with Buda is very telling, as the percentage of the 400 000 HUF/m2+ range has rapidly increased, from 32% to 56% in a year. The same tendency is present in unit prices, as the percentage of the 40 million plus category has also jumped from 19% to 25%. Even more shocking are the figures in Pest, where the percentage of 400 000 HUF/m2 properties has almost tripled from the 12% measured last year.

(Source: http://realista.hu)

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