DUNA HOUSE BAROMETER

  1. issue

    2017. QI-2.

    and 2017. JUNE

    THE LATEST PROPERTY MARKET INFO FROM DUNA HOUSE NETWORK

    www.dh.hu

    PRIVACY POLICY

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FORTHCOMING ISSUES

Date of issue Content August 8, 2017 2017. July data September 8, 2017 2017. August data October 9, 2017 2017. Q3 data (including price indexes)

Duna House Barometer is available from the 8th day of each month (forthcoming weekday if weekend) on the webpage: www.dh.hu/barometer

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GENERAL INFORMATION CONSERNING THE CONTENT OF THE PRESENT PUBLICATION

All data, information, estimates and professional statements presented in the publication are developed based on data gained from the activities of Duna House Holding members, or in some cases are based on subjective experience. Application of those for the entire Hungarian property market may require additional corrections.

Data sources - unless indicated differently at the given section- derive from the database operated by Duna House Holding, the content of which is compiled by members of the network upon their individual judgement and information

gained from clients. The operator does not take responsibility for the comprehensiveness of the data. Data presented in the present publication is mainly based on parameters of property transactions in major Hungarian cities given by Duna House branch offices and agents.

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CONTENT:

JUNE 2017 DUNA HOUSE BAROMETER

2. Privacy Policy, Forthcoming issues

  1. Executive Summary

  2. Transaction Number, Demand Index

  3. Flat Indexes - merged, national

  4. Residential Flat Indexes - regional, Budapest

  5. Brick flat data - 2017. Q1-2.

  6. Panel flat data - 2017. Q1-2.

  7. Bargain by regions/districts (Q1-2)

  8. Flat price data, Regional quality preference (Q1-2)

  9. Interest toward districts, bargain (June)

  10. Client profile: buyers

  11. Client profile: sellers

  12. Transaction parameters - Budapest

  13. Transaction parameters - Regional

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EXECUTIVE SUMMARY

Although the turnover on the real estate market has shown a fluctuant picture so far this year, it is still amongst the strongest first six months of the recent years. Number of sales and purchases reached nearly 13 thousand in June, which is 12% less than in the same, outstanding period of the last year. This year's value still exceeds all other previ- ous June months.

Duna House has given a 75 thousand volume estimate for the total turnover in Q1-2 of 2017, which shows a 5% de- cline when compared to the same period of the previous year, but also which has been the strongest six months of the post-crisis era so far. Q3-4 in 2016 showed a volume below 68 thousand, compared to which, this year presents a 13% increase.

Following this year's 89 point highest score in February, demand has been decreasing in line with the trends, and ended at 74 point by the end of the first six months. Last year, the index reached its bottom point similarly in June, with 71 points.

The price decrease experienced in Q1 of this year doesn't seem to be permanent - the National residential property index has jumped from 117 points to a new high value of 121 points. The real index deflated with the consumer price index stands at 93 point, meaning it still has not reached the pre-crisis level of early 2008.

The National Panel Index, on the other hand, is at its peak on real value as well, arriving at the 100 points base value. The same doesn't apply to the Brick Index, which is still 12 points behind the pre-crisis level. Actually, both indexes have recovered from the setback in Q1 and are at 129, and 114 points (on nominal value).

Regional indexes have generally risen, with the exception of the brick index for East-Hungary, which has dropped from its 122 point peak at the end of last year to 112 firstly, and to 110 by now. In the same region, the panel index is at its peak with its 127 points. In the west side of the country, the indexes of brick and panel flats is the same, namely 109 points. In case of brick flats, with a strong jump, it actually presents the highest value so far.

In Budapest, prices of panel flats seem to be unable to stop rising. The index has nearly steadily grown during the past 3.5 years, standing at a peak of 159 points at present, which presents a record on real value as well with 123 points. The capi-tal's brick index also broke a record when it rose from 123 to 128 points and ended up only one point behind the base value.

When comparing the parameters of properties sold in the first six months of the year and those sold a year before, price increase can be detected. In Budapest, in Q1-2 of 2016, for example, only 10% of the buyers paid more than HUF 600 thousand for a square meter, while this year is was 27%. In the same price range, on the Pest side the ratio has doubled from 6%. In Budapest, the most popular properties are still in the size range of 40-60 m2, chosen by 36% of the buyers. The ten-dency of the more expensive price levels accounting for a bigger portion this year than earlier is - less impressively - also detected. Here, 6% of the buyers paid more than HUF 300 thousand for a square meter last year, which is 12% at present. In Pest County, the ratio of the same price level grew from 9% to 17%.

In Q1-2 of 2017, regionally, Tolna County presented the lowest average unit-, and square meter prices (HUF 131 thou- sand/m2) for used brick flats. The same flat type regionally was sold on the highest price in Győr-Moson-Sopron County, where buyers paid HUF 292 thousand for a m2.

In Budapest, District 22 ended up being the least expensive from all aspects (average HUF 281th/m2) when looking at used brick flats, while the most expensive area was District 5 with its HUF 787 thousand. The average square meter price was above HUF 500 thousand in another eight districts.

In case of panel flats the average unit-, and square meter price, similarly to brick flats, was the lowest in Tolna Coun- ty. Here panel flats were available for HUF 124 thousand/m2. Highest average m2prices, similarly to used brick flats, were found in Győr-Moson-Sopron County. The average HUF 276 thousand m2price found there is still HUF 50 thou- sand below the general Budapest average.

In Budapest, the most expensive panel prices were found in the panel-weak District 2, namely HUF 565 th/m2. Among Districts with bigger panel volumes, prices exceeded HUF 400 thousand in District 11, in addition to which Districts 13 and 14 also presented HUF 370 thousand m2prices on average.

In Jász-Nagykun-Szolnok County, sellers lowered the listing prices by 3% on average (in some other counties it reached 4%), but the buyers were able to achieve a further 9% discount. In Borsod-Abaúj-Zemplén County buyers were able to make seller lower their prices by 4% on average, and sellers also decreased their original prices by 3%. In Budapest, the least volume-modification of prices was detected in District 3, where the original listing price remained nearly the same (2%). In District 1, buyers were forced to lower their original prices by 5%, which was fol- lowed by another 6% discount achieved by the buyers.

Further information

Gábor Rutai

Head of PR and analysis rutai.gabor@dh.hu Mob.: +36 30 811 0690

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Duna House Holding Nyrt. published this content on 19 July 2017 and is solely responsible for the information contained herein.
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