The huge increase of the properties’ prices seems to be over soon in Districts XIV and XVI, reports tozsdeforum.hu. The properties in Districts XIV and XVI tend to be overpriced for the time being, but, according to the experts, premonitory signs can be noticed that the increase will be over soon, moreover, it can turn into a decrease.
Almost reaching the middle of the year, we can see a stagnating demand in the property markets of Districts XIV and XVI. It seems that the property market gets its balance back – Tamás Sebestyén, the professional manager of Balla Ingatlan stated. Due to this balance, the prices of the flats in vogue came to a sudden stop and headed downwards instead.
“We can experience more and more frequently that an overpriced flat gets stuck on the market, we barely get any calls related” – the estate agent said adding that the number of inquirers of the property markets of the two mentioned districts noticeably decreased last month compared to that of the preceding months. Parallel to this, the supply started to increase, though only a bit. Its reason is simple: the decrease of demand resulted in the increase of the selling side – added Tamás Sebestyén.
In spite of this, it is still typical that people try to sell their flat for quite an absurd price. They usually set out from the prices of other flats in the neighbourhood. They saw or at least heard about a flat of a certain price very near to theirs, and they try to determine the price of their own flat on the basis of the other one. This, however, usually leads to wrong prices and later to properties stuck into the market.
Parallel to this, the measure of bargains is constantly increasing. There are more and more “impudent offerers”, who are not afraid of offering a price which can be lower by 10-15 per cent. Of course, these bargains are not typical in practice. According to Tamás Sebestyén, if the gap is big between the advertised and the offered prices, there will usually not be any agreement about the flat.
One reason for this can be that the seller sticks to the official price too much, despite the fact that the offered price could be the normal market price of the flat. But it can also happen that the buyer tries to make a too impudent offer for a flat of a normal price. However, the result is what counts: the appearance of a serious conflict of interests, and then the fail of the deal.
According to the expert, in addition to the changes already mentioned another factor has appeared: people tend to take out mortgages again. The estate agent thinks that it is on the one hand due to the fact that the conditions of the mortgages offered by the banks are really favourable with these interests, while on the other hand because of the really high rents people are not able to and do not want to pay.
This leads to the tendency of buying own properties, and more and more people choose to pay the instalments instead of the rent. The expert of Balla Ingatlan this tendency of taking out mortgages can be permanent.
As for the prices of the properties, the average price of a square metre in Zugló is about 1,000-1,200 EUR. In the cases of the old brick blocks in District XIV, the average price of a square metre can be higher by around 160 EUR. The starting price of a family house in District XVI is 130,000 EUR, at least in the cases of those properties which are “fine and good for real, and there is even something in them” – according to Tamás Sebestyén.
Newly built properties do not influence the property markets of these two districts yet. We can only meet some planned constructions; blocks of flats under construction can be barely seen – the expert pointed out. Balla Ingatlan expects a thousand new flats to be built by the end of 2018 in Zugló.
Much less flats will be built in District XVI, as there is a lack of big developments, mostly row houses, semidetached houses and family houses are built. The price of a square metre in the newly built ones in District XIV can be around 1,500-1,900 EUR depending on the location and the project, while properties in District XVI the price of a square metre is usually 160-320 EUR cheaper.
The estate agent expects that the future will depend on the formation of the flats’ prices in these two districts. He thinks that, since there has been a huge increase in the prices in the last few years, a significant decrease can happen in the following months.
According to Tamás Sebestyén, the market’s slowing down and the decrease of the prices will first be noticeable in the cases of flats. The decrease that has already appeared means only the beginning of this process, the decrease will not stop at this point. In half a year or a year a significant fall will take place in the case of the flat’s prices – he added.