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New home prices up 7.6% in first half

Average new home prices rose 7.6% in the first half of 2018 from a year earlier, while the price of resale homes increased 8.2%, according to a summary of data published by the Central Statistical Office (KSH), as reported by state news wire MTI Tuesday.

Adjusted for changes to the composition of homes sold, prices were up 6.8% year-on-year for new homes, and 3.1% higher for resale homes in H1 2018.

In the second quarter of 2018, unadjusted new home prices were up by 10.4% and resale home prices by 10.6% compared to Q2 2017. Adjusted for the composition of sales, new home prices were up 7.1% and resale home prices rose 2.3% annually in Q2.

Compared to Q1, new home prices rose by 1.8% and resale prices by 2.3% in the second quarter.

Based on preliminary data, there were around 59,000 home purchase transactions in H1 2018, around 7.1% more than in the first half of last year when calculating with a comparable data set, the KSH said. The statistical office noted that an increase in home sales could most likely be attributed to resale home purchases as it seems there has been no change in new home sales.

In the capital, resale homes sold for HUF 26.6 million on average during H1, some HUF 2.2 mln more than in 2017. The average price per square meter of resale homes in Budapest rose to HUF 477,000, up from HUF 419,000.

New home prices in the capital rose 9.6% from 2017 to HUF 29.8 mln on average in Q1-Q2, with the price per square meter increasing to HUF 572,000, from HUF 512,000 in 2017.