The past 4 years experiences showed us a continuous growth in the sales prices of the Budapest City residential property market. More of us think or thought, that this tendency just can not stop.
Although the 2nd and 3rd quarter reports of KSH and real estate agencies predict us with more or less, but differently their prognosis. Let’s check how the story has been developing!
Already in the summer, the whisperings of the real-estate companies and building material distributors were more likely about significant retardation. In residential real estate market it seemed that low number of sales deals were realized by a normal level of interest.
The 2nd quarter 2019 KSH report (http://www.ksh.hu/docs/hun/xftp/stattukor/lakaspiacar/lakaspiacar192.pdf) practically opened more eyes that time by its paragraph, which includes: ‘ The decrease in the number of the used properties confined to bigger cities, contrarily in the smaller regions the market could still show up a widening. In Budapest 47, in the county towns with 9% less sales contracts were registered this year compared to the last year same period.’ Practically it means that the number of the sales transactions in whole Budapest decreased to its half compared to the same period of last year!
Since the beginning of October the news are about the increase of the building material distribution, although by this we can not separate the demand of the building material demand of the city centre from the whole Budapest. Besides, real-estate agents report increasing transaction numbers of the well-priced properties, the return of bargains, differentiation on the market: the sudden increased neighborhood prices are less powerlessness, can be sold on the market with higher price reduction, whilst on those areas which had a higher prestige before the boom, by there the necessary bargain for a sale deal is lower. Probably we can risk to say that the sales of apartments in-need-of-comprehensive renovation became more difficult, independently from their location.
The September transaction-number prognosis (https://dh.hu/hirek-a-nyari-visszaeses-utan-ujra-visszakapaszkodott-a-piac) published by Duna House - Duna House reports and estimated data are known as professional and widely followed by market participants - was about a new run-up of the country residential property sales, but, contrary to the routine, there was no any information about how Budapest market performed. Indeed some experts explained this different prognosis based on an expected later date start up of the market, and as well because KSH processes with different estimation methods which has the chance of mistakes.
Duna House just-released, country-based, November transaction-estimation (https://dh.hu/hirek-tranzakcioszam-becsles-2019-november) shows a downturn of residential property market – but unfortunately there is still no Budapest-market specific data.
We are curiously looking forward, that instead of estimated and country-wide data, based on already processed data and measurements we can write you about 2019 year...
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