Unexpected turn on Hungary’s property market concerning sales
Certain types of apartments become problematic to sell in Hungary. Based on a representative survey, more and more vendors ask for professional help when they decide to market their real estate. Although in 2021, only three out of ten did so, OTP Ingatlanpont, the Hungarian bank’s real estate company, reports a considerable change in that respect. Professionalism is becoming more and more important in the market. They believe new contracts will remain to come easily. However, it is getting harder to sell the properties.
“Fewer apartments sell themselves” is the title of profitline.hu‘s recently published article regarding the issue. “Last year, it was enough to put on advertisements, and we sold them in no time”, Csaba Laczi, the Budapest regional director of the OTP Ingatlanpont, summed up his experiences. Their representative survey shows that in 2021 only 31 percent of the vendors asked for the professional help of real estate agents.
Demand skyrocketed for apartments in Hungary in the last few years. However, it seems that the market changed over the spring-summer period. Owners say they received significantly fewer phone calls from private individuals after they put their real estate on sale. Therefore, more people turn to professionals if they plan to market their apartments. Interestingly, the trend is present not only in Budapest but also in rural cities. “We have never received more contracts in the second-hand housing market than this September”, Szilvia Piros, the South Alföld regional director of the company, highlighted.
Read alsoHuge change coming to the Hungarian real estate market in January?
Their survey showed that people sold their property without professional help partly because they wanted to save the commission and thought the process would not be too hard. Since the business environment changed and new questions were raised, concerning details of the energetic properties of the flats, more vendors need the help of professional agents. Of course, agents must be up-to-date with the latest regulations and changes and need to be able to communicate continuously between the parties.
Csaba Laczi warned that some Hungarian owners still think property prices go up monthly. However, that was only true half a year ago. The trend is now that the prices are decreasing everywhere in Hungary, including even the newly-built flats.
Read alsoSeven-year record broken: many people started to advertise their property in Hungary
Source: profitline.hu
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2 Comments
Irrespective of “created” Marketing strategies, from in-side the Real Estate / Property Market Profession, to “Lure” vendors to sell property’s, which means lessening of sale price, due to percentages of commissions – like the traditional Real Estate agent’s percentage taken on sale of property over & above “other” costs – to list for sale a property,
Elementary – if you SELL your own property – the costs to YOU as the Owner / Vendor of the property, you personally manage & control them.
If the property sells through YOUR instigation – you, as the VENDOR – realize greater FORINTS in your Bank account, than if you had engaged a real estate agent or an OTP “styled” agent, who would work on a HIGH commission ratio if they sold your property, plus all “other” marketing promoting paraphernalia costs – that goes with the selling of a property.
Hungary – a SATURATED sellers’ market.
Hungary – astounds me – we build on and on.
Vendors likened to the Stock Exchange or Commodity Markets inclusive of the Currency Market – to be a SELLER, into a SHARP trending downward market, through a NEED to SELL – can be PERILOUS.
What is the OVERALL position – the Economic & Financial outlook for Hungary – present, short term immediate & long term?
We know the present, is that our Economy is in a Cataclysmic mess – that gives ALL indications, it is TRENDING lower.
Sellers – the disproportion to Buyers – then the state of the Economy, prices have to FALL.
Foreign Investment – is NOT going to STABILIZE the Real Estate- Property Market – in Hungary.
Interest Rates – from “inside” circles – expected could go to 18% – 20% – by December 2022.
PLENTY still to unfold – in the Real Estate/Property Markets of Budapest, Hungary – that will not make for pleasant reading.
The plural of property is properties. And yes maybe because of commissions, but the prices are too high. In seven years the prices are almost three times as high for the same think we looked at then. No thanks. Keep it.