"Real estate price growth has now hit its ceiling as prices rise faster than wages," says Petr Makovský from Reality.iDNES.cz.
The record prices of flats have long been reported by large cities. In Brno, however, the trend has slowed significantly in recent months. "Everything suggests that the moment when prices rise," says Trikaya Executive Director Alexey Vesely.
During the first half of the year, the cost of one square meter in a new apartment in the second largest city of the Czech Republic fell to 75,000 crowns.
Even in other regions, real estate prices have hit the ceiling. "They are no longer in the Moravian-Silesian and Olomouc regions or in the Highlands." Significant stagnation or even decline is also registered in the Oulans and Eastern regions, "said Martin Foztick, Operational Director of Finental Reality.
The decline in prices in Ústí nad Labem confirms the data from the developer firm Tregega. In its analysis, the average cost per square meter of the new flat in the Ústíad Labem region fell by almost six percent compared to the second quarter of this year.
The analysis also gives other signs of cooling the real estate market – the average prices fall year-to-year, in the South Bohemian and Liberec regions. A similar scenario, however, certainly does not expect the real estate market in Prague. Even here, on the basis of a year-to-year comparison, it can be seen that the rise in apartment prices is beginning to slow down in recent months.
From July to September, it was 15.5 percent, with 24 percent in the previous quarter. This is the result of data from the developers of Central Group, Skanska Reality and TriGega. The average price of a square meter in a new apartment in Prague has thus exceeded 100,000 crowns. But with the purchase of a new apartment, it is not worthwhile to wait, the prices will most likely continue to grow.
"The sale price corresponds to the current limited supply of new projects, in addition, the central bank hit the market, setting new rules for mortgages." Estimates now reach a third of the few applicants, "said Central Group Executive Director Michael Tomaskova.
New rules from the Czech National Bank have been on the market since mid-year. The most discounted flats appeared in June, the Valuo.cz platform which collects and evaluates data from major domestic real estate servers.
"This month, we saw 5,057 claims reduction by sellers, which is, 12.7 percent of our advertised ads," says Radek Stritter, founder of this site. The average discount for this month's apartment reached 184,000 crowns. It was in June that the CNB announced it would tighten the criteria for mortgage applicants who could motivate the owner to speed up sales. In October, for example, there are only 2,195 discounted flats in the market, less than half.
Buyers can no longer pay more
Strong mortgage rules have been in force since October, and they feel more and more in the market. "There are few people interested in some properties, where there are seven in average, there are now three, and sometimes we have to wait for the buyer," says Pavel Hasman of Rey / Max Real Estate 4you.
Beastly real estate agency also saw a drop in interest in mortgages. "I admire that people interested in housing are afraid that the CNB regulation should have a fall in prices," explains its director on behalf of Mašín. However, according to him, the majority of these situations are not in the process.
"The measures of the Czech National Bank may be characterized as artificially restricting demand that the natural one should cause a fall in real estate prices, but this does not happen," says Milan Roček, head of the CenováMapa.org portal, which closely monitors real estate Prices in the Czech Republic.
"Maybe the current economic situation, we go through the richest time of the last three years, there is no high unemployment in any region, and income is growing everywhere, in the situation, there is no pressure on the market, willingness or need Sell real estate at a lower price, "explains Roček.
However, it has confirmed that prices in the region are starting to stagnate. According to him, the fact that more and more dwellings are sold, also underlined. "There is no requirement with demand, we find ourselves in a situation where sellers are not ready to cheat and buyers no longer want or can not pay more," says Roček.
Downstream sales developers register. "The biggest decline we have recorded over the last three months where markets have grown unprecedented in the past, namely the Jihomoravský, Středočeský and Olomoucký regions." Sales of new flats have dropped by half, "says Radek Polak, spokesman for Tregga.
The main reduction is the reduction of sales in the metropolis of the South Moravia Region. "Sales of new apartments in Brno are steadily declining, this year from January to September shows a year-to-year decline of 35-40%," says Alexey Veselý, executive director of the Tricaya developer in Brno.
Prague is still going
The mismatch of the buyer and seller's ideas about the real estate price means that the apartments are traded less. "We observe a slow, continual decline in market activity this year, and the prize of sales takes place across the Czech Republic," notes Roček.
However, real estate professionals do not expect this situation to reflect in price reductions in the near future. In order to do something similar, it needs a correctly critical event.
"For a significant price correction in the order of tens of percent, it would be something really great, such as the economic crisis." CNB's adjustment of conditions will not have such a strong impact, "says Makowski of Reality.iDNES. cz.
The fall of prices on the market will most likely be the first to appear on more expensive real estate, such as large-apartment apartments available 4 + 1 and larger. "We know from the past that it will be a bigger and more luxurious real estate." Owners have high expectations that are no longer linked to a given market, "explains Hassman of Re / Max 4You.
With regard to property costs developments next year, most experts expect a general stagnation or a modest continuation of growth in the largest cities. "We expect it only in some locations, such as in the center of Prague or Brno," says Massin of Beefy reality. "I'm afraid Prague will be on the real estate bubble for a while," says Fudzky of Senkred Reality.
"Brno or Pilsen is also known for their long inertia effect." As the economy continues to struggle and the cities continue to grow, we expect a slight increase in the next year, "added Martin Fodzhík.