Prices of flats, houses and land in the Czech Republic rose slightly quarter-on-quarter in the first quarter. Flats rose 0.3 percent compared to the last quarter of last year, but became 3.1 percent cheaper year-on-year. Year-on-year, apartment sales increased by 17 per cent. Single-family homes rose the most quarter-on-quarter, by 1.1 per cent. Their value has thus increased for three consecutive quarters. Land prices were 0.7 per cent higher than in autumn and four per cent higher year-on-year. This is according to the CSOB housing index, which the bank’s representatives presented to journalists yesterday. In the last quarter of last year, prices of flats and houses tended to fall or stagnate. However, the price of land rose significantly. According to representatives of ČSOB Hypoteční banka, the downward trend in property prices has stopped.
Although the prices of flats fell by lower units of percent year-on-year, ČSOB expects them to start rising again this year. Currently, the fastest rising prices are in the Olomouc and South Moravia regions, as well as in Prague. The greatest interest is currently in larger flats in the category of family housing, i.e. in 3+1 and 3+kk layouts, mainly in prefabricated houses. On the other hand, small flats are stagnating in price, which, according to ČSOB, shows the lack of access to housing for the young generation and the shift of some young people to rental housing. According to the analysis of developers Central Group, Skanska and Trigema, in the first quarter of the year the most frequently sold apartments in new buildings in Prague were 2+kk. However, there was also interest in new 3+kk flats, where the price per square metre was the lowest and where demand was previously significantly lower. According to ČSOB, the average selling time of flats has slightly shortened to 4.2 months.
Demand for detached houses increased by more than 30 per cent year-on-year. Compared to the period between 2018 and 2022, however, fewer homes are still being sold. Also evident, according to the index, is buyers’ lack of interest in energy-efficient homes, which may be a result of rising energy prices and people’s interest in more cost-effective housing. According to the index, land prices are rising steadily. This may be because demand for plots is outstripping supply. Traditionally, the highest prices and demand are for land around Prague and in the Central Bohemia Region, but ČSOB is also registering increased interest in other regions. Apart from the location, the price of land is influenced by its size and shape, utilities, transport accessibility and civic amenities in the vicinity. Furthermore, the orientation to the cardinal points and the slope of the terrain.
The statistics of the Czech Banking Association Hypomonitor show that banks and building societies in the Czech Republic granted mortgage loans worth CZK 21.9 billion in April, which is an increase by a fifth compared to March and more than double compared to April last year. Interest rates on new loans fell to 5.1 percent from 5.19 percent in March. That’s the lowest since June 2022.
Last year, home prices fell 5.8 percent year-on-year, according to the CSOB index. This has been the case every quarter of the year, but prices fell 2.5 percent quarter-on-quarter in the first quarter and just 0.2 percent by the end of the year. The price of houses was flat year-on-year, but the price of land rose by 7.2 per cent. Towards the end of the year, the rate of growth in land prices slowed down. Demand for detached houses rose by 16 per cent last year, with demand mainly for smaller houses in good condition.
The ČSOB Housing Index, formerly known as the HB Index, is based on realistic estimates of the market prices of properties purchased by the banking group’s clients through mortgage loans. The bank first published the index in April 2011.
House price development (down 3.1 per cent year-on-year)
Quarter-on-quarter change
1Q/2023 -2,5 %
2Q/2023 -2,1 %
3Q/2023 -1,1 %
4Q/2023 -0,2 %
1Q/2024 +0,3 %
Price development of single-family houses (up by 1.1 per cent year-on-year)
Quarter on quarter Quarter change
1Q/2023 -0,1 %
2Q/2023 -0,6 %
3Q/2023 +0,3 %
4Q/2023 +0,3 %
1Q/2024 1,1 %
Land price development (up four percent year-on-year)
Quarter on quarter Quarter change
1Q/2023 +3,8 %
2Q/2023 +2 %
3Q/2023 +1,1 %
4Q/2023 +0,1 %
1Q/2024 +0,7 %
Source: CTK
Data Source: ČSOB, Hypoteční banka
