Supply of New Housing Breaks One and a Half Decade Record

The supply of new housing has broken a decade and a half record, significantly restraining the rise in the price of new residential property, said an analysis by ingatlan.com.

According to their data, over 8,100 new apartments and houses were offered for sale in the country in mid-September, a level not seen in a decade and a half. The last time investors and real estate agents sold so many new-build properties was before the 2009 foreign currency crisis.

They stressed that not only the supply of new-build family houses has expanded significantly, but also the supply of residential apartments is at a one-and-a-half-year high.

In their analysis, they showed that the expansion of supply is holding back the rise in the price of new residential property, with new prices in the capital up 5 percent and second-hand prices up 10 percent, contributing to the almost 25 percent increase in demand for new-build residential property in Budapest this year.

It was also reported that the average price per square meter of new residential property in Budapest was HUF 1.38 million (EUR 1 = HUF 395) at the beginning of September, compared to HUF 1.32 million a year earlier. In the cheapest districts, the districts 18 and 20, new apartments are offered for sale at an average price of HUF 900,000 and HUF 952,000 per square meter respectively. In districts 9 and 13, the average is above HUF 1.5 and 1.4 million respectively. The most expensive district is 12, where buyers can expect to pay over HUF 2.8 million.

In four of the counties, the price per square meter exceeds HUF 1 million.

In Debrecen (eastern Hungary), Pécs (southwestern Hungary), Szeged (southern Hungary) and Zalaegerszeg (western Hungary), prices are between HUF 1.01 and HUF 1.1 million. At the same time, the average in Székesfehérvár (central Hungary), Veszprém (western Hungary) and Kecskemét (central Hungary) is between HUF 929,000 and 940,000. Kecskemét and Miskolc (northern Hungary), as well as Nyíregyháza (northeastern Hungary), are more favorable in this respect, with new build residential properties for sale at prices below HUF 700,000 per square meter.

László Balogh, chief economic expert at ingatlan.com, noted that that thanks to state housing subsidies, the number of family houses and semi-detached houses for sale has increased, while investors are looking for residential apartments.

Via MTI; Featured image via Pixabay