The front page of the Czech economic daily Hospodarske noviny carries the headline (in Czech) residential developers have long dreaded: “Flat prices falling by hundreds of thousands (of CZK). All you have to do is wait.”
Waiting, of course, is exactly what developers are praying customers won’t do. The paper bases its story on a study conducted by the Institute for Regional Information.
“Market prices for flats have been falling for half a year and have been reduced since the peak last November through May of this year by an average of 7 percent. The fall has sped up in the past three months,” says Milada Kadlecova, IRI’s director. The paper says a fall of 15 – 20 percent in housing prices is likely this year.