Virus effect on Property prices?

Austria news

Virus effect on Property prices?

So where is the market heading after the virus? Should I be considering a property investment in Austria?

Well, to date there were higher house prices, and fewer transactions.

In 2019, many apartments in Austria changed hands, but not as many as in 2018

The number of apartment sales in Austria has increased steadily since 2013,  and 2019 was the latest reported.   With 49,832 apartments registered in the official land register, there was a slight decline in the previous year.  For the first time, the number of 50,222 units from 2018 remains the record transactions.

However, the sales value of the apartments traded rose further by 711 million euros to around 11.6 billion euros.      Average price rose 7.2 %

On average, an Austrian apartment cost € 211,826 in the previous year, 7.2 % more than in 2018.  In a five-year comparison, the typical prices of the traded apartments increased by 23.9 %, and in a ten-year comparison by 72.8 %.

In Vienna, 14,546 units were traded in 2019, which was 2.5 % fewer apartments than in 2018, but the total volume increased by 6.1 % to 4.05 billion euros.  This means that 29.2 %, or 34.8 %, of all Austrian apartment sales were carried out in the federal capital.  A quarter of all buyers paid less than 159,000 euros here, another quarter paid more than 319,000 euros.  On average, the typical selling price of a condominium in Vienna was EUR 246,192, which is EUR 17,372 (7.6 %) higher than in 2018.

“Will there be a price shock” after Corona outbreak

“The number of apartments sold has levelled off last year at a high level, and prices have increased again,”   Real estate and thus the housing market in Austria was directly affected by the Corona crisis. In the first two weeks after the crisis began, there was a certain amount of shock, the demand for apartments fell significantly in this phase.”

In the meantime the situation has “improved considerably”, and one assumes that after the end of the difficult situation, the supply of apartments will increase and demand will not return to the high level of the past few years due to the difficult general conditions.

 
All of this will lead to the fact that “from today’s perspective, prices will not rise. Consequently in many regions it is likely that prices will fall, this will be particularly so in rural areas where demand is less than cities.
Source: Der Standard
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