It would be enough from a buyer, but now the scarce and overpriced supply is causing trouble in the suburban and panel real estate markets of East Pest. Actual prices have risen 3-7% around here, but there are many 20-30% overpriced apartments and houses. The panels are still in demand, but the increasingly expensive (but even advertised at the right price) family houses are caught in the XIV. and XVI. district in the suburban parts.
When the third wave began to flatten and the first restrictions were lifted, a greater impetus was felt in the real estate market.
However, this has subsided now, we have now moved into the slightly more restrained summer real estate market season: those interested want to get out of their homes in an understandable way after the last months of the epidemic, enjoy the summer and not walk in real estate in the heat.
The biggest problem now is not with the demand, but with the fact that the supply market is very narrow – indicated Tamás Sebestyén, Balla Ingatlan XIV. and XVI. professional head of his district office.
If an apartment appears in the market that belongs to the category you are looking for and is not overpriced, ie it is not valued 20-30 percent higher than the market average price, then those interested will be struck down in a matter of moments, the supply of good real estate is so modest now The realtor explained.
According to his observations at present we can talk about a strong demand market, but in addition to the weak supply, there is still a lot of overpriced real estate. Most of them are so overpriced that there is no demand for them at all, i.e. buyers don’t even get into the bargain anymore, they simply move on to the next ad.
As for prices, about a 3-4 percent increase was observed during this year. This was definitely felt in the panel flats in Zugló, but it was also felt in the brick-built second-hand properties. Also drastic, 5-7 percent price increase was typical in the XVI. district with detached houses with gardens, where today you have to make friends with basic prices of 90-100 million for a better quality house. Here, too, the problem is that there is no supply that can meet the needs of the demand side.
The rate of overpricing can be put at 10-20 percent, which means a price increase of 3-4 million for average homes. The real estate agent also mentioned a specific example: the starting advertising price of a two-room apartment on Thököly út was HUF 34 million, which could then be sold for HUF 28 million. Of course, this was already conceivable at the beginning, but the owner insisted on a higher starting price, he added.
Accordingly, the bargain can be significant, 10-20 percent for a property, however, if an apartment is offered at an average market price, it will sell out in no time without a bargain. However, if it is advertised well above the realistic price, there is no demand for it at all – explained the expert, who also added that it is typical that in many cases transactions are not urgent from either sellers or buyers, so both sides tend to wait.
Sales times are usually around 3 months in case the property is overpriced. In such cases, the first one or two months are usually spent with the owner holding on to the price, and then if for some reason he still thinks about selling, in the third or fourth month, the price begins to fall to a level acceptable to buyers.
The most sought-after category is again panel flats in these two districts of Pest, as although their prices are very close to those of brick flats, they are still the most affordable category. But it can also be observed that even these relatively cheap panel flats can often be bought by people with only a minimal, 20 percent deductible, as “few people run around with 20-30 million forints in their pockets,” said Tamás Sebestyén.
The price of two-room, medium-sized panel flats is currently between HUF 24-28 million, and it is not possible to get brick-built flats for this. In the case of detached houses, the starting prices are 90-100 million, while in the case of newly built flats the prices have risen from 800-850 thousand a year ago to 1 million forints, but it seems that there is a demand for them at this price as well.
Investors are still present in the market, despite the fact that we can’t talk about short-term housing spending at all right now. They are looking for apartments in good condition, which can be rented out for 130-150 thousand forints in the long run. Renovation investors, however, are in a more difficult position as it is difficult to find cheap properties to renovate, and they are also having difficulty with drastic increases in building material prices and wages.
Because of this, it is also possible to feel that buyers are being pulled towards better condition properties, although there are always people who want to arrange the renovation themselves to make the apartment look the way they dreamed of, added the expert, who eventually noted that in the coming months may be more stagnant in the real estate market.
More movement is expected from the fall, however a possible fourth wave may affect this forecast, while next year’s elections will be uncertain.
Source: Ingatlanhírek by ingatlanhirek.hu.
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