Czech Republic Property News Wrap-up :: Weeks of September 6 to September 17, 2010

Czech Point 101 July 22, 2014 @ 2:48PM

1. Over 14,000 flats built in H1, drop of 23%
(http://praguemonitor.com/2010/09/07/over-14000-flats-built-h1-drop-23)

High-level overview of article:
A total of 14,296 dwellings started to be built in the Czech Republic in the first half of this year, 23 percent down year-on-year, the Czech Statistical Office (CSU) said yesterday.

Our take:
We would repeat our feeling that a supply/demand crunch is on the horizon in 12 to 18 months.


2. Fitch Ratings assigns Czech eurobonds an ‘A+’ rating
(http://praguemonitor.com/2010/09/08/fitch-ratings-assigns-czech-eurobonds-rating)

High-level overview of article:
The rating agency Fitch Ratings assigned Czech Republic’s state bonds worth EUR2bn an ‘A+’ rating which corresponds with the country’s long-term ‘A+’ rating with a positive outlook, the agency said.

Our take:
This viewpoint of stability of the Czech economy and government is also reflected in the Eurobond sale article below.


3. Romania, Ukraine May See Strong Eurobond Demand After Czech Sale Yesterday
(http://www.bloomberg.com/news/2010-09-07/romania-ukraine-may-see-strong-eurobond-demand-after-czech-sale-yesterday.html)

High-level overview of article:
Romania and Ukraine will likely face “strong” demand for their planned Eurobond offerings after the Czech Republic raised euro-denominated debt in an oversubscribed issue, Credit Agricole Cheuvreux SA said.

Our take:
5.3 billion EUROs in bids on 2 billion of issued bonds. I am not an expert on bond issuances but these numbers seem to indicate a very good investor’s view of Czech Republic and it’s stability.


4. Czech Economy Expands Most in Two Years on `Surprising’ Domestic Demand
(http://www.bloomberg.com/news/2010-09-08/czech-economy-grew-most-in-two-years-last-quarter-on-demand-for-exports.html)

High-level overview of article:
Czech economy grew at the fastest pace in two years in the second quarter as declining unemployment and rising wages led to an unexpected increase of demand from domestic consumers.

Our take:
We expect this will continue until the end of the year and we should see some, although marginal, reflection in Czech housing prices.


5. Czech cbanker says future CZK firming to be slower
(http://www.reuters.com/article/idUSPRG00436320100909)

High-level overview of article:
The Czech crown currency’s appreciation trend will likely be slower in the future, central bank board member Robert Holman said on Thursday.

Our take:
CZK gains 6.65% against EUR since the start of 2010. That is good news for foreign investors.


Updated/Aktualizováno: ,

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