This will start the first of (hopefully regularly) summary of the weekly news and how we feel they are going to affect the property market in Czech Republic for both sales and rental.
Please let us know your thoughts on this and if you feel it is valuable we will continue to do it! Always welcome are suggestions to improve.
1. Czechs see flat prices taking downhill dive
http://www.radio.cz/en/article/118724)
High-level overview of article:
After years of seeing their bricks and mortar assets rising in value, Czechs are now coming to terms with falling prices for flats and houses. But while gloom and doom mongers predict that a lot worse is still to come, some analysts can see signs of a recovery.
Our take:
Confusion still reigns king as conflicting results on Czech property prices are reported. With the way banks continue to restrict lending (see following article) we expect further lowering in prices but not more than 5% in 3Q.
2. Volume of granted mortgages down one-third in H1
http://praguemonitor.com/2009/07/30/volume-granted-mortgages-down-one-third-h1)
High level overview of article:
The volume of mortgage loans granted to individuals dropped by one-third year-on-year to Kc39.7bn in the first half of 2009, according to data made public by the Local Development Ministry Wednesday.
Our take:
With banks not restricting lending further in 06 and 07/2009, according to our dealings, we expect banks to hold steady with their current Czech mortgage criteria and policies until Q4 2009. HB has even removed requirement of foreigners to have SRO or residency permit to purchase property. This is in line with the Land Registry’s position on registration of owners and is the first bank to do so. A very positive step in the right direction!!
3. Confidence in Czech economy slightly up in July
(http://praguemonitor.com/2009/07/28/confidence-czech-economy-slightly-july?goback=.nvr_1773380_1249030259843_1)
High level overview of article:
Confidence in the Czech economy slightly grew in July, with the aggregate confidence indicator rising by 0.8 points month-on-month, the Czech Statistical Office (CSU) said Monday.
Our take:
Sentiments are that things are improving. Although car producers are still reporting big drops in profit from H1 we are hearing now that factories in Czech Republic are running full capacity. Recovery in Czech Republic should be V shaped in our opinion. With this in mind property sellers will prefer to sit on their properties rather than reducing prices.
Updated/Aktualizováno: December 11, 2014,