Small and largest apartments become cheaper faster
“The year-on-year decline in apartment prices reached its annual maximum of 6.2 percent. We now expect apartment prices to stabilize in the coming period, but we may already be approaching a turning point. Compared to the previous quarter, interest in 3+1 and 3+kk housing units increased, the prices of which fell the slowest. The prices of small 1+1 flats fell the most out of all apartment categories, which is unusual, as it used to be the other way around. The prices of large apartments 4+kk and larger, where deferred demand can play a role, also decreased faster than in the previous period. says Martin Vašek, CEO of Hypoteční banka.
For clients who are waiting for a more favorable buying opportunity for apartments, conditions have improved the most in the Pardubice, Moravian-Silesian and Ústí Regions, which show the strongest quarter-on-quarter discount. The Moravian-Silesian region has had the deepest decline since its peak, which is also due to the large number of sales of panel apartments in large housing estates. Apartment prices in Prague went down at a faster pace than in the Central Bohemia region. The largest decrease in Prague was for panel apartments in the large housing estates Prague 4, 8 and 9. In Central Bohemia, housing units in the districts of Rakovník and Příbram fell the most.
Apartment sales are growing slightly, rentals are still popular
The number of apartments sold has stabilized, and is even growing slightly, although in a year-on-year comparison it is still a significantly lower volume. In the third quarter, the supply of older apartments stabilized, on the contrary, in the case of new buildings, the supply is decreasing, there is uncertainty regarding the possible start of new construction projects. The selling period of apartments has not changed much and reaches an average of six months.
“We are pleased with the growing interest of clients in housing loans as well as sustainable housing financing. Households react positively to the slight drop in interest rates and perceive significantly lower apartment prices year-on-year. The growing demand from clients for housing loans is also reflected in the easing of the inflationary environment and the deferred demand for real estate. We meet our clients, we look for the best way for them to finance housing, and this is also reflected in their growing trust and satisfaction. It can be interesting for clients to buy a property with a worse energy standard and then invest in modern energy-saving heating, renewable sources or insulation, for which the New Green savings subsidy can be used,” says Martin Vašek, CEO of Hypoteční banka.
Rental housing still remains popular. “The young generation simply does not buy so-called starter apartments, but goes straight to rent. The market has stabilized in this regard and prices are stagnating.” explains Martin Vašek.