Sim Property Group
One-stop shop for your property
Czech Republic, Poland, Slovakia & Bulgaria
русский Български Połysk česky English


PROPERTY NEWS
* CZ: Avoid mortgage redemption penalties
* CZ: When to consider QNUPS
* CZ: Prague Property Market
* CZ: Zack Crichton Prague
* CZ: 39% less mortgages
* CZ: Ocro loss up
* CZ: Flat construction down
* CZ: German fund buys Prague office
* CZ: Land registry numbers fall
* CZ: Prices stop falling
* CZ: Prague Hotel revenue lower
* CZ: Market in the middle
* PL: Next property boom
* CZ: House prices fall Q2 09
* CZ: Central Group profit up
* CZ: Homes sell for less
* CZ: MPs against foreign buyers
* CZ: Panelak prices fall
* PL: Polish prices fall
* CZ: Prague expensive in V4
* CZ: Buyers market
* CZ: Property shells
* SK: Slovak market falls
* CZ: Rent deregulation extension
* CZ: Karlovo Namesti overhaul
* CZ: Orco seeks protection
* CZ: ECM REI loss 2008
* CZ: Developers expand
* CZ: Orco shakeup
* CZ: PFF-ECM property group
* CZ: Building output grows
* CZ: New home starts fall
* CZ: Bank cuts base rate
* CZ: Prague prices fall
* CZ: Developers divide Rohanksy
* CZ: Property market tough times
* CZ: Senior housing
* CZ: Copa Centrum Prague
* CZ: ECM REI makes loss
* UK: Home repossessions rise
* CZ: Czech rents rise
* CZ: Property price growth slows
* CZ: Holesovice Brewery completion
* UK: House sales slump 53%
* CZ: Prague's city within a city
* CZ: Mortgage demand falls slightly
* UK: House prices fall 1.3% September
* CZ: Brno grows a Manhattan
* RO: Bucharest construction boom
* CZ: Czech housing funds
* PL: Dom development in Wroclaw
* CZ: Brno get highest Czech building
* CZ: Rents rise by 50% in some towns
* UK: House price falls accelerating
* CZ: Hourly wage up 41%
* CZ: AFI & Satpo post loss
* CZ: ECM issues more shares
* UK: House prices fall 10.5%
* CZ: Interest rates down to 3.5%
* CZ: Some cities go down with rents
* CZ: Regulated rents rise steeply
* CZ: Orco 3bn euro project
* CZ: Building output up 2% in April
* CZ: New district in Prague
* US: No pick-up for US housing
* CZ: Tourist numbers up 10.5%
* US: Homes best bargin since 04
* UK: Taylor Wimpey close 13 offices
* US: California sales up 22%
* US: Construction picks up in April
* CZ: M&M reality doubles turnover in 07
* CZ: Building output slows 0.8% March
* CZ: Builders finish 9.8% more homes
* UK: Mortgage lending hits 33-year low
* UK: Redrow downbeat on market
* CZ: Immorent CR lays cornerstone
* UK: Repossession orders climb by 17%
* CZ: Three bidders for Rohansky ostrov
* UK: Halifax confirms price fall
* UK: Prices down 1% y-on-y
* US: House prices show steep fall
* UK: Prices slow down
* CZ: J&T to invest 90bn
* US: Home sales at 16yr low
* CZ: ING profits up 44%
* US: Prices continue to fall
* CZ: Prices grow fatest in Ostrava
* US: Manhattan prices defy trend
* CZ: Property seizures up
* CZ: Central Park Praha
* CZ: Volksbank profit up 80%
* UK: Housing gloom
* CZ: Building output up 11.5%
* CZ: Building societies loan CZK 17.5bn
* CZ: Land speculation blossoms
* UK: Warnings over mortgage lending
* US: Foreclosure bill passed
* CZ: Finep start huge Prague project
* US: Further house price falls
* UK: House prices drop sharply
* UK: Abbey pulls 100% mortgages
* CZ: Inflation & Unemployment down
* US: Rust belt put on housing bill
* US: Late payments at record high
* CZ: HSBC courts Czech millionaires
* CZ: Czech rates stay at 3.75%
* CZ: UK Mortgage squeeze to get worse
* CZ: Czech managers 34th best paid
* CZ: Manhattan prices reach record
* CZ: Rich Czech's flood Sumava
* CZ: Czechs buy record airline tickets
* CZ: Raiffeisenbank, eBanka profits up
* CZ: Czech Banks profits up 24%
* CZ: ECM profits exceed expectations
* CZ: Record CZ income tax revenue
* CZ: Internet Ad spending up 70%
* CZ: Orco profits up to 3bn CZK
* CZ: ECM profits up 28%
* CZ: Skoda sales up 39%
* CZ: Developer VGP 2007 profits treble
* CZ: Brno get ratings up grade
* CZ: Record CZ card payment growth
* CZ: GDP at 82% of EU level
* CZ: Allianz net profit soars 54%
* CZ: Guests at luxury hotels up 11%
* CZ: Current account CZK 4.8bn surplus
* CZ: Foreigners boost accommodation
* CZ: Tourism revenues rise 7.3% in 07
* CZ: Wages rise 7.3% in 07
* CZ: Car sales rise 13% in Feb
* CZ: ECM trebles profit
* CZ: Firms pay av wages over 100,000
* CZ: Prague Europe's 3rd best retail city
* CZ: Cesk nets CZK 12.15bn in 07
* CZ: Czechs demand better facilities
* CZ: Demand for homes still high
* CZ: Komercni Banka profits up 21%
* CZ: Staff in car industry up at 124,000
* CZ: Banks compete for millionaires
* CZ: Bonatrans Group sales up 17% 07
* CZ: Koreans to invest billions of CZK
* CZ: Austria's VIG comes to Prague
* CZ: KB's net profit up at 10.8bn 07
* CZ: Telefnica O2's 07 profit 9.5bn
* CZ: Prague Household debt tops 900bn
* CZ: Prague skyscrappers
* CZ: Tourist numbers up 3.8%
* CZ: CZK 10bn spend by Hyundai
* CZ: Prague Houses on Letna plain
* CZ: Prague 38% uplift in homes 07
* CZ: Prague 12th richest region in EU
* CZ: eBay comes to Prague
     


International Property News



Czech panelak flat prices fall by up to one-fifth


11th June 2009

The prices of flats in prefab buildings are now as much as 20% lower on average than they were a year ago. Property prices in general have dropped by an average of 10-15%. People are less interested in buying their own homes, while demand for rentals is rising, according to the latest data from the real estate portal bezrealitky.cz. The data are based on the end prices of properties sold.

"The fall started in last year's final quarter, when prices peaked in most regional cities," said Jakub Havrlant, head of the website. Prices grew until last autumn, with growth reaching as much as 30% in Plzen, Ostrava, st nad Labem and Teplice, for instance. "The market was showing a certain inertia and resisted the global property crisis," he said. "One of the reasons was that prices here were not as overestimated as they were in other countries."

Gap getting wider

In recent months, the gap has gotten wider among different localities and individual properties. "The market is more sensitive, and people choose more carefully what they buy. They are interested more than before, for instance, in what developments are planned in the broader vicinity of a given property," Havrlant said. "Fortunately, the time when it was possible to ask for high sums of money for apparently poor-quality housing is over," he added.

The price decline is most apparent in localities and properties with some "hitch". It might be a "nonpromising" location or a bad view, but good transport accessibility is also increasingly important. In Prague's surroundings, ithat involves especially fast train connections to the centre: That is why properties for instance in Rcany, valy, Cesk Brod, Beroun, Kralupy nad Vltavou and Celkovice sell very well.

Havrlant said that the number of "speculative" purchases of properties has decreased as well. "Clients who just wanted to lease out a property and did not plan to live there themselves did not care about the locality so much," he added. By contrast, Bohdan Suchnek, marketing director at mortgage bank Hypotecn banka, does not agree. "The decline has come mainly because demand is decreasing already from the large group of people born in the 1970s," he said.

Suchnek regards the drop in prices as a return to normal. "There was not any property bubble in the Czech Republic," he said. "After 20 years of constant growth, a moderate decline has come."

Stagnation to come

The biggest drop in prices was recorded for old flats in prefab houses. For example a three-room flat with kitchen in Prague's Jin Mesto housing estate sold at CZK 3.5 million a year ago, but its average price this year is CZK 2.7 million. The overestimated prices of prefab flats in Brno have dropped 20%, with a three-room flat now for as little as CZK 1.7 million.

"We suppose that average prices will stagnate," Havrlant said. One of the few towns where average market prices will grow slightly this year is Cesk Budejovice and possibly in st nad Labem, as well.

While the prices of lower-quality properties may still keep on falling, those of new and better-quality projects will rise. "Prices of flats in new buildings in attractive localities have remained unchanged or even increased a bit against last year," Havrlant said. But people are starting to distinguish to a greater extent even among new projects. The standard that clients expect includes a balcony, a basement, storage space such as a walk-in wardrobe or storeroom, and a parking lot. Also important is an attractive location with services available.

Demand rising for rented homes

The market for rentals in Prague has increased 5% over the last year, and Ostrava recorded a 10% growth. Decreased access to mortgages is one of the factors behind this.

Source: Prague Monitor
Sim Property Live Chat