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Ecostat property market gauge reaches eight-year low

Economic think-tank Ecostat's Real Estate Barometer, a measure of sentiment on Hungary's property market, fell 4.3 percentage points to 41.8% in the fourth quarter to reach an eight-year low; though the index for the year, at 44.9%, was still half a percentage point over the full-year figure for 2007.

The index measured 46% in Q2 and 45.6% in Q1.
The full-year index recorded and all-time high of 53.5% in 2002.
The measure of demand on the retail property market slipped 12.8 percentage points to 40.6%, reaching its lowest level since 2001.
Tighter lending conditions as well as higher interest, both for forint and foreign currency-denominated loans, are likely to reduce the propensity of and the possibility for households to take out loans, causing a fall both in new and resale home sales, Ecostat said.
The property investment gauge dropped 5.3 percentage points to 33.8%, its lowest level since the survey started in 2001.
Ecostat projects a scale back in retail property as well as trade, service, educational and industrial buildings.
The real estate brokers sub-index fell 4.1 percentage points to 44.9%.
The local council property-development index dropped 2.6% to 60.4%.
The corporate real estate index slid a slight 0.6 percentage point to 35.5%.
Market players projected a 6.8-9.9% property price increase in 2009. They see building material prices rising 9.9% and the price of labor climbing 6.8%. Plot prices could rise 6.9%. (MTI – Econews)