The Chinese and Vietnamese bought apartments in Budapest by the dozen
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In 2019, about 7,000 apartments were purchased in Hungary by foreign people, 4.5% less than a year earlier. The composition of buyers was more or less the same as in previous years: the most buyers were from Germany, closely followed by Chinese buyers, but the largest increase was among Vietnamese buyers, shows the report of the Hungarian Central Statistical Office.
Portfolio says that after a slight decrease, foreigners bought almost 7,000 apartments in Hungary in 2019, 4.5% less than in 2018. The composition of buyers was similar to previous years. Most buyers were German; the number of apartments bought by Germans was almost a tenth higher than the previous year. The number of Chinese buyers slightly decreased, but they accounted for the second most populous group of foreign buyers.
In contrast to the country statistics, in Budapest, the Chinese were the most prevalent buyers, while the number of Vietnamese buyers increased by more than a third.
On the other hand, buyers from the neighbouring countries declined as Romanians and Slovaks bought 16% and 14% fewer apartments respectively than in 2018.
Buyers from different countries also have different market behaviours. While German, Dutch, Belgian, Swiss, Romanian, and Slovak buyers are mainly interested in rural, and therefore cheaper, real estate, Chinese, Vietnamese, and Israeli buyers are more interested in apartments in Budapest, especially in the more expensive downtown area. To put it in numbers, 98% of the 348 Vietnamese buyers bought real estate in Budapest.
Who and how much do they spend?
While buyers from the Netherlands spent an average of 11.5 million forints (~€31,500) on real estate, Vietnamese buyers spent much more, over 60 million forints (~€164,300).
Apart from them, the Chinese and the French also bought from the more expensive segment; the buyers of both nations spent almost 50 million forints (~€137,000) on the purchased apartment. Austrians mostly bought real estate near the western border of Hungary, for an average of 24 million forints (~€66,000). The average spending of Romanian buyers was only 13 million forints (~€36,000). This was among the lowest, as they mostly bought real estate in the eastern parts of Hungary, where real estate prices are much lower. The Dutch spent even less, and they mostly bought real estate in small towns in Southern Transdanubia.
“You ain’t seen nothing yet.”
Statistical figures continue to present before the very eyes of Hungarian citizens, the progressive attitude that the people of China and Vietnam have in buying into the property market in Budapest, Hungary.
The “open market” they participate in, un-restricted by Governmental Law in Hungary, in the property market, their cashed up personal positions – big thick wallets – this is not the end nor the beginning of the end in fact what is to come will be mind boggling.
The losers WRONGFULLY are the younger Hungarian generation – the first home buyers or young investors looking at a second property purely based on investment.
Excessive vulnerability and exploitation- requiring tighter laws in foreign investment levels of ownership are urgently required in Hungary.
If this is not listened to and acted on, their will continue to be a grave distortion of balance that far in excess favour – the people from countries that I refer in the second paragraph of this commentary.
Are they buying to use as their permanent residence ?
Are they buying as Investments to rent out ?
Are they buying to leave empty and gain benefits from taxation for there investment in Hungary – watching the value of the property increase ?
Break down there – “Modus Operandi” – what is their AGENDA – in the property market in Budapest ???
If laws and breaks are not applied – in the immediate future Hungary will pay a hefty price for encouraging and permitting this active on-going vibrant buyer market that is seen and will continue to be seen, from the named country’s in my comments.
A ceiling must be introduced on foreign property ownership.