The supply of new housing has increased to levels not seen for a decade and a half in the national market, which has also had a positive impact on prices. In mid-September, more than 8,100 new apartments and houses were offered for sale in the country, a level not seen in a decade and a half.
Increased competition on the sell-side has also brought a positive change in prices for buyers. In Budapest, for example, prices of new homes for sale rose by only 5 percent, compared to a nearly 10 percent increase for second-hand homes.
At the beginning of September, the average price per square metre of new residential property in Budapest was HUF 1.38 million, compared to HUF 1.32 million a year earlier. The cheapest districts, XVIII and XX, offer new homes for sale at an average price of HUF 900,000 and HUF 952,000 per square metre respectively. In districts XI and XIII, the average is above HUF 1.5 and 1.4 million respectively. The most expensive district is XII, where buyers can expect to pay over HUF 2.8 million.
The price per square metre is already above HUF 1 million in four of the county seats. In Debrecen, Pécs, Szeged and Zalaegerszeg, prices are between HUF 1.01 and 1.1 million. At the same time, the average in Székesfehérvár, Veszprém and Kecskemét is between HUF 929 and 940 thousand. Kecskemét and Miskolc, as well as Nyíregyháza, are more favourable in this respect, with new build residential properties for sale at prices below HUF 700 000 per square metre.
Another important change is that from July this year, only very energy-efficient homes with near-zero emissions will be allowed to be occupied, so new homes that may seem more expensive at first may be a better value choice due to lower overheads and better technical content.
It is expected that new-build housing will not be a scarce commodity in the property market later on. However, as costs continue to rise, prices may rise faster than at present in the medium term.
(source: real estate.com)
