Real Estate Advertisers More Willing to Cut Prices
Photo by Fabio Balbi / Shutterstock.com
According to otpotthon.hu, compared to the first half of the year, it seems that advertisers have become even more open to price cutting. According to the portal's latest data, the trend is nationwide, as the rate of price reductions by sellers increased in both Budapest and the countryside in the July-September period, although only by a few percent compared to the average at the beginning of the year.
Sellers advertising on otpotthon.hu changed their advertising prices in one-third of the active listings nationwide. Taking all property types into account, 66% of advertisers are still confident that their properties will change hands at the advertised price, while 30% have already reduced their prices, up from 28% measured in June.
According to otpotthon.hu's data for the third quarter, sellers who changed the price of properties for sale that had been advertised for 3-6 months reduced their prices by more than 90%.
"In response to the slowdown that started at the end of last year, we have seen a change in attitude among sellers since the beginning of the year. Our data shows that the first major wave of price reductions occurs in the 3-6 months after the activation of the ad, followed by an even larger wave of changes around the first anniversary. In addition, the increase is not only in the rate of price reductions, but also in their extent: from 6% at the beginning of the year, the average price reduction in Budapest rose to 9.4%, and in rural areas, it is almost 11%," said Zsuzsa Lipták, managing director of OTP Otthonmegoldások Kft.
According to the portal, the number of real estate advertisements was highest in Budapest and Pest County, while in Bács-Kiskun and Békés Counties. In Budapest, there is a greater willingness to reduce prices, while in rural areas, advertisers of property for sale are still more likely to stick to their original valuation. In the 12-18 months following the activation of an advertisement, the downward trend in prices is accompanied by an upward trend - those who increase the price of the advertised property (4% of the advertising stock) are looking to sell their property at a 13-14% higher price.
Based on the total active ad inventory of the real estate advertising portal, there is no significant difference in the average price per square meter by property type, with the average price per square meter of detached houses still the most affordable (HUF 500,000), followed by "panel apartments" (HUF 700-760,000), and brick apartments and new-build housing estates can exceed HUF 1 million per square meter. Compared to the initial advertised prices, the willingness to reduce prices is higher for houses and apartments (32%) and lower for new build projects (19%).
There is also a difference in the extent of price reductions: it is lower for flats, at around 8%, and up to an average of 10% for houses and new-build developments.
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