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The crisis in the crown has caused the prices of apartments and houses in Austria to rise even more, as has the National Bank. In Vienna, the rise in residential real estate prices accelerated in the second quarter of 2020 to 4.1 percent compared to the same period a year earlier, after 3.9 percent in the first quarter. Outside of Vienna, it has gotten even more expensive: 6.8 percent, after a 2.8 percent increase.
In the federal states without Vienna, single-family homes were in particular demand: the price increase tripled to 10.6 percent in the second quarter. Single-family homes have also remained very expensive in Vienna, with prices increasing 10.4 percent in the first quarter of 2020 and 11.7 percent in the second quarter. “This may be due to the increased desire to live in the country or with a garden due to the effects of the Covid-19 pandemic (tendency towards home office, experience in confinement, social distancing),” the Oesterreichische Nationalbank said on Monday ( OeNB). Throughout the year we will see if this trend will continue.
In Vienna, single-family houses are only a small part of the property market. New condos in the federal capital rose in price by 5.4 percent in the second quarter of 2020 and used condos by 2.3 percent. In the federal states without Vienna, there has not only been a notable increase in price increases for houses, but also for new apartments, from 3.5% to 7.2% in the second quarter.
Since mid-2019, residential property price increases in Austria had slowed, and with the increase in the lockdown quarter now, price increases reached levels since the first half of 2019.
In Eastern and Southeastern Europe, however, according to initial data, the crisis has slowed demand for residential properties, according to the central bank. The reasons for this were lower incomes, deteriorating job prospects, and household insecurity. In the first quarter of 2020, apartments and houses in the region (with the exception of Hungary) were even more expensive than the EU average. Both home loan granting and construction activity were strong.
In most other EU countries, house prices also rose sharply before the crown crisis. However, the pandemic greatly concerned consumers, and the demand for loans for residential properties fell significantly.
In Austria, buying a house or building a house on credit is still good business: in June 2020, the effective annual interest rate for mortgage loans, that is, total costs, including interest and expenses, was 1, 77 percent, 33 basis points below June 2019.
When it comes to foreclosures, they stalled in 2019 at around 1,400 scheduled dates, after falling significantly in 2018. This is what Viennese real estate data provider SmartFacts Data Services collected. Revenues remained about the same at a high level, according to the APA request. In 2018, the estimated value was around 325 million euros. In 2009/10, after the financial crisis, the numbers soared. Currently, it is difficult to assess how the crisis will affect the crown. In the second quarter of 2020, during the lockdown, the number of foreclosure auctions collapsed, “but it is not yet possible to see if there will be a follow-up effect in the fourth quarter and possibly 2021 as well,” the company said on Monday. . To transmit.
