Nationwide, asking prices were little changed from September, with prefabricated apartments continuing to retreat from their April peak.
Adjusting for changes in the mix of properties advertised, average asking prices per square meter rose 0.1% nationally and fell 0.5% in Budapest month-on-month, the latest Zenga Ingatlan Radar showed.
The national average remained close to HUF 1 million per sqm, compared with approximately HUF 1.5 million in the capital. Annual asking-price growth slowed to 6% nationwide.
“Taking changes in the composition of listings into account, residential property prices decreased across all major areas of Budapest in October compared with September. The largest decline, at 1%, occurred in inner Pest, while prices fell 0.2% in outer Pest and 0.1% in Buda,” said Péter Futó, head of research at zenga.hu.
Unadjusted figures showed average asking prices per square meter falling in 12 districts, although most declines were smaller than 1%.
Outside the capital, asking prices rose 0.2% in surrounding municipalities and 0.5% in lakeside settlements around Lake Balaton.
Zenga said the increase around Balaton, despite weak demand, could indicate that sellers had yet to adjust their expectations to subdued buyer activity.
Prefabricated apartments recorded the most pronounced correction among property types. Nationwide asking prices fell 0.8% in October from September, bringing the decline since April’s peak to nearly 3%.
Asking prices for brick-built apartments decreased 0.6% month-on-month, while those for detached houses increased 0.6%.
Zenga said earlier substantial price increases could be contributing to the correction in prefabricated apartments.
In Budapest’s Districts IX and XI, prefabricated apartments in average or good condition were advertised for 5% less than a year earlier. Annual declines reached 4% in District XX and 3% in District XIV, also known as Zugló.
In District VIII, asking prices for housing-estate apartments were 7% below their April peak.
“The direction of demand following the phaseout of Otthon Start and the introduction of Wekerle Plusz under stricter conditions will significantly influence home prices in the coming months,” Futó said.
“If the changed financing conditions lead to a decline in buyer activity, that could further slow annual price growth and bring additional price decreases for certain property types and in some areas,” he added.
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