New-build sales are down, but prices are not yet

The number of new flats sold has fallen rapidly recently as mortgages have become more expensive. However, the fall in interest has not yet affected prices in Prague or Brno. However, buyers can get a discount of several hundred thousand crowns in less desirable locations, especially for older flats.

In large cities, the seller would rather wait for a buyer with cash than a significant discount. So far, discounts are rather sporadic in cases where sellers are in a hurry for the transaction.

In Prague, 64 percent fewer new flats were sold in the second quarter of this year (950 units) compared to year-on-year. According to an analysis by Trigema, Skanska, and Central Group, this is a one-third drop compared to the long-term average.

New flats did not decrease in price, as the average selling price was CZK 145,783 per square meter. Compared to the first quarter, this increased CZK 34 per sqm. Prices are 20% higher year on year.

The analysis showed that, compared to public offer prices, actual sales prices are five to ten percent lower, with developers delivering 4,150 housing units to the Prague market in the second quarter.

In April, developers admitted to a 50% drop in the number of units sold year on year.

According to the portal, there are currently over 5,000 flats for sale in Prague of all categories, ages, and sizes, including prefabricated and cooperative flats.

Of this offer, more than 570 flats are in new buildings or under construction development projects. One fifth are 1 + kk and 1 + 1. There are 220 2 + kk and 2 + 1 flats and 145 three-room flats.

For example, for a 2+kk, 58 sqm in a project in Na Dračkách street in Prague 6, the offer price is over CZK 11 million; the price per sqm is almost CZK 190,000.

Brno is getting more expensive

In Brno, 292 new units were sold in the first quarter, while in the fourth to sixth month of this year there were only 161 flats, which is the lowest in the past four years.

Of these, 78 flats were sold in Králov Pole, 25 flats in Brno-město, and 30 new units in Veveří in the first three months of the year.

However, the average offer price per square meter in Brno increased by 1.7 percent in the second quarter to CZK 127,200.” Year-on-year, offer prices went up by more than 12.5 percent,” said Dalibor Lamka, chairman of Trikaya’s board of directors.