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New home sales still weak, despite rise from last quarter

In the summer months, developers sold about 1,000 newly built flats in Budapest, which is almost double the record low in the previous quarter, but still the second weakest value in the last four years, according to the latest analysis of the Budapest Housing Market Report, writes portfolio.hu.

The number of newly launched projects and the number of dwellings were also below the low point of the previous quarter.

The market sentiment, which began to plunge in the last six months, is being combined with the economic downturn caused by the coronavirus, the price increase of 27% of projects this year, and the shrinking supply. Over the past year, the share of homes that can be sold with 27% VAT has increased from 40% to 46%, while the share of homes sold has fallen from 41% to 31%. The number of vacant homes has dropped by about 7%, with about 6,300 homes making up the current newly built supply in the capital.

The contraction in supply is well illustrated by the fact that this represents the lowest value in the last three and a half years.