Hungarian housing market sinks deeper
Hungarian house prices plummeted further during the year to Q2 2010. In Q2 2010, nationwide house prices were down 9.93% (-14.50 inflation-adjusted) from a year earlier, and fell 3.89% (-5.52% inflation-adjusted) from a quarter earlier. The average transaction price of houses was HUF230,349 (US$1,188) per square metre, according to Otthon Centrum, a real estate agent. (FHB and Origo, the two other sources of house price index, have not released their 2010 indices yet.)
Construction activities have been dismal. Residential building permits issued were down 46%, while the volume of construction of buildings was down by 5% in July 2010, from a year ago. Moreover, house sales were down by 50% at end-2009, according to a survey conducted by Business Monitor International.
