For the first time in 12 years, Belgian house prices are falling. The figures come from the real estate barometer of the Federation of Notaries (Fednot). Houses are now 0.3 per cent cheaper than last year. But in Flanders, houses still became more expensive. "Still, in Flanders too you see a cooling of the market," assures Bart Van Opstal of Fednot.
Тhe cooling of the property market is primarily translated into fewer transactions. In the first six months of this year, 4.2 per cent fewer homes were bought in Belgium than in the same period last year. In Flanders, there is even a fall of 5.9 per cent.
It’s a big difference from a few years ago. "We experienced a very eventful time," Bart Van Opstal of the Federation of Notaries notes. "After the shock triggered by the pandemic, there was a real rush on real estate. Transactions were numerous and prices shot up."
"Since this year, you see a clear cooling down. We saw that especially in the first months of the year: January and February. We also noticed a decline in the three following months too. But, remarkably enough, from June onwards, we once again see an increase in the number of transactions."
Price of a house
Overall Belgian house prices fell 0.3 per cent compared with a year ago. The fall is small, but still noteworthy. "We looked at the figures. It is the first time in 12 years there has been a drop in house prices. You can see this as a consequence of the general cooling of the real estate market."
A house in Belgium now costs an average of €320,937. "By comparison, in 2018 the average price of a house in Belgium was still 253,608 euros." In Wallonia, the average price fell to 236,148 euros (-1.4%). In Brussels, the drop was greater. There, the price went to 536,712 euros or a 4.1 per cent drop.
Still, not all Belgians who want to buy a property are cheering. In Flanders, you pay an average of 358,863 euros for a house. There, prices did not fall, but rose by 1.7 per cent compared to the 2022 annual average.
"It's about just over 1 per cent, but we haven’t seen such a small rise in years. We are used to prices in Flanders rising significantly quarter after quarter. So here, too, we see a clear cooling of house prices."
Flat prices
People looking to buy a flat still have to fork out more than a year ago. On average, a flat cost 255,882 euros in the first six months of this year. An increase of 1.7 per cent or some 4,000 euros compared to the 2022 annual average.
In Flanders, the increase is 2.5 per cent. The average price here reaches 263,953 euros. In Wallonia, prices rose by 2.4 per cent to an average of 199,530 euros. In Brussels, prices did fall. There, a flat costs an average of 273,208 euros, 0.6 per cent less than the 2022 annual average.
Fewer new builds and fewer young buyers
The Federation of Notaries also noted two more issues. Fewer new-build flats were sold in the first half of this year. The share drops to 15.1 per cent. In 2018, it was still 21.6 per cent.
"It has to do with the cost price going up. That is due to the new energy regulations, construction costs, but also labour costs. For several months now we have also seen rising interest rates for mortgages."
The proportion of young buyers is also lower than in 2022. 27.3 per cent of Belgians who bought a house this year are 30 years old or younger. In 2022, the figure was still 29.3 per cent. The average age of a purchaser is now 40.2.
source: vrt
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