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As the index reported, the prime minister yesterday announced a 5 percent VAT refund on new homes to be built by the end of 2022. According to the government’s Facebook page, this applies to construction that began on December 31. .
It is part of history that from January 2016 to the end of 2019, this reduced rate of VAT was in effect once, but only for a defined period of time. It’s cool now
the facilitation will be returned to the system as part of the economic protection action plan,
to mitigate the economic consequences of the epidemic.
László Balogh, the leading economic expert on the ingatlan.com portal, welcomed Index’s decision, adding that if the current VAT rate of 27% had been maintained, it would have resulted in an increasingly unsustainable situation in the market. As a result of the discount, which was abolished at the beginning of the year.
new home prices have increased by about ten percent this year,
Therefore, investors / builders demanded a price that was no longer affordable for the average urban person.
This was not a profit motive, but a cost increase that set minimum prices for investors / sellers of new homes.
The analyst added. According to him, the first introduction of five percent also increased the demand for housing, which was reflected in the rise in prices of materials, for example. In addition, there has been a shift on the demand side: buyers of apartments for investment purposes have preferred to buy new apartments, but now they are beginning to disappear from the market.
Is a price drop expected?
According to Balogh, a drop in the price of new properties is expected only in cases where
- Investors bought an apartment that had not yet been completed.
- and / or did not yet have a building permit,
- and not built in the rust zone.
But this is very rare, said the expert, who certainly did not expect a 20 percent price reduction. However, he added that the evolution of prices also depends on the level of demand, which can be influenced by other elements of the government’s housing construction program.
The index already knows other plans
According to our information, the government will soon announce new details of the relevant chapter of the economic protection action plan. In addition to the VAT rate of 5%
- the property acquisition tax will be reduced (or even halved),
- related notary fees are reduced,
- and building regulations will also be “relaxed.”
We know that specific announcements are expected in the next few hours and days.
(Cover image: Németh Sz. Péter / Index)
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