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New home prices up 8.2% in Q1

Continuing a trend of more than four years, average new home prices rose 8.2% in the first half of 2017, while the price of resale homes increased 9.3%, according to a summary of data published by the Central Statistical Office (KSH), cited by state news agency MTI.

Prices have risen for four and a half years in a row for new homes, and for three and a half years for resale homes.

Adjusted for changes to the composition of homes sold as well as price, prices were up 8.8% for new homes and 0.6% higher for resale homes in 2016.

New home prices have increased by 19.5% since 2015 at face value, but adjusted for changes to composition, prices are still 2.0% below the 2015 level.

A similar trend is true for resale homes, where unadjusted prices increased by 23.9% compared to the base year, but were down by 14.5% after adjustments.

Based on preliminary numbers, the KSH said that 55,400 homes were sold in Hungary in the first half of 2017, down from 77,097 in the same period of 2016. Of the preliminary figure, 53,736 homes were resale homes and some 1,800 were new homes.

In the first half of this year, 2,600 homes were built specifically to be sold, said the KSH.

In the capital, resale homes sold for HUF 22.6 million on average, some HUF 1.4 mln more than in 2016. The average price of resale homes per square meter in Budapest rose from HUF 361,000 to HUF 402,000.