Czech house prices grew by the fastest rate in the European
Union over the past three years, the survey said, up by 54% over
the period, versus 24% in the EU as a whole.
(1 euro = 23.7048 Czech crowns)
($1 = 22.2580 Czech crowns)
(Reporting by Jan Lopatka; Editing by Sharon Singleton)
PRAGUE, Feb 22 (Reuters) - Czech housing transactions
dropped by 50% last year to a 10-year low, as soaring inflation,
high interest rates and the war in Ukraine scared buyers, data
from the Czech Banking Association (CBA) and Dataligence showed
on Wednesday.
Dataligence CEO Milan Rocek said demand culminated in late
2021, with the market short of apartments on offer, but the
start of Russia's invasion of Ukraine in February 2022 brought
an abrupt change.
"Higher energy prices, a sharp rise in inflation, that all
changed people's mood," he said. "This was multiplied by growth
of mortgage interest rates. The real estate market practically
froze in the second half because of that."
The number of new mortgages fell to a 20-year low last year
while the volume was the lowest in a decade, the survey said.
New mortgage volumes for the full year, excluding
refinancing, dropped by 57%, CBA had reported earlier, as
official interest rates soared to 7% last year from 0.25% the
year before.
The CBA has reported an 82% year-on-year drop in new
mortgages in December alone.
Despite the drop in volumes, prices gained as supply
continued to be tight.
Prices of older apartments reached a peak around mid-2022
but still showed a 3.4% year-on-year rise in the fourth quarter,
the survey said.
Newly-built units recorded an 11% year-on-year increase in
the fourth quarter, with prices in the capital Prague reaching
151,643 Czech crowns ($6,812.97), or 6,397.14 euros, per square
metre.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.