Czech residential sales increased by 20 percent last year, with an average price of CZK 58,508/sqm including VAT, writes the developer Trigema in its latest market analysis. Developers sold a total of 4,578 flats in Prague, up by 20 percent y-o-y, while the average price dropped despite the most recent VAT hike. Marked price reductions for unsellable flats contributed to the drop in average prices, according to Trigema. The supply-demand situation pushed prices in some projects to levels equaling construction costs. Trigema points to the price war between Ekospol and Central Group, for example, with the latter offering one-room apartments in Prague 10 for CZK 950,000 including VAT.
“Smaller flat areas have also contributed to the price decrease, as well as locations. Two extensive low-cost projects in Horní Měcholupy, a location far from the center and with bad access have sent the prices further down,” writes Trigema. Horní Měcholupy topped the list of locations of the most number of sold units, with 352 hits last year. Sales started moving also in regional cities such as Brno and Pilsen. In Pilsen, 17 developments are currently offering flats, with sales increasing by 50 percent in 2012 y-o-y.
