The Hungarian Central Statistical Office’s housing price index for the second quarter of 2016 reveals that the price increase of pre-owned flats and houses slowed down in the second quarter of 2016, as it was only 0.7 % compared to the sharp growth of 5.1 % experienced in the first quarter. An outstanding price increase occurred in Budapest though, where real term prices now exceed pre-crisis levels; nevertheless, prices continued to fall in smaller cities, napi.hu reported.
The number of sales in the market also grew by 29 % compared to last year, which means that the real estate turnover has almost returned to pre-crisis levels, the analysis claims.
So far in 2016, a pure price increase of 9.9 % occurred compared to the average price level of last year, meaning that the properties would be almost 10 % more expensive if they were sold today. Meanwhile, the average sale price of pre-owned properties has fallen by 2.3 %.
In the first half of 2016, the price of pre-owned homes exceeded the nominal levels measured in 2008, and was 14.9 % higher than the 2010 base. The prices of newly built homes already passed the 2008 level in 2015 and have increased by a further 8.3 % since then. In 2016, newly built housing units were 19.2 % more expensive than in 2010.
However, considering the real value of homes, the prices are still lower than they were before 2008. Adjusted to the consumer price index, both newly built (10 %) and pre-owned (13 %) properties are less costly than they were before the crisis.
In the first two quarters of 2016, the rise in the price of pre-owned homes continued to accelerate in Budapest: the price of an average home increased from HUF 17.4 million (EUR 53 600) in 2015 to HUF 19.5 million (EUR 63 200). Consequently, the real value of properties in Budapest is already above the pre-crisis level by 2.6 %.
The price per square metre of pre-owned properties also grew in Budapest from HUF 290 000 (EUR 940) in 2015 to HUF 338 000 (EUR 1 100) in the second quarter of 2016. In the county seats, the average property price per square metre is HUF 177 000 (EUR 580), while that in smaller villages is HUF 129 000 (EUR 420).
The Central Statistical Office also revealed that, in addition to Budapest, Győr-Moson-Sopron County also saw a significant price increase, thus, becoming one of the most expensive regions of Hungary.
Prices reached the 2008 level in all districts of Budapest, but the scale of the price increase varies. The greatest price increase occurred in the 5th, 6th and the 7th districts.
In the second quarter of 2016, the overall housing market index of the EU member states accounted for 105.4 % of the 2010 base value; while within the Eurozone, the housing price index was below the EU average with a value of 101.5 %. Since the first quarter of 2014, the Hungarian house price index has sharply increased, and it passed the 2010 level by the beginning of 2015, exceeding the EU average.
In the second quarter of 2016, the aggregated value of the Hungarian house price index was 114.4 % according to the Eurostat methodology.
Prices similarly increased in most of the EU member states; however, the increase was less than 1 % in Croatia, Cyprus and Italy. An outstanding increase of 7 % occurred in Latvia, but prices increased by more than 3 % in Estonia, Lithuania, Portugal and Norway as well.
Each of the neighbouring EU countries was characterized by price increases exceeding the EU average. Properties became more expensive by 1.9 % in Slovenia, by 2.3 % in Austria, by 2.6 % in Slovakia and by 2.8 % in Romania.
translated by Gábor Hajnal
Copy editor: bm