“Increasing market overheating”
The trend of rising house prices accelerated in the third quarter. According to the Oesterreichischer Nationalbank (OeNB), prices rose by 9.5 percent nationwide in the period from July to September compared to the previous year. In the second quarter, the increase was only 5.2 percent. The OeNB suspects that the price hike is due to the corona crisis (lockdown, home office) and the greater desire for green living and single-family homes. Because in Vienna the increase was slightly lower.
In Vienna, residential property prices rose by 9.4 and 4.1 percent respectively – in the federal territory excluding Vienna a little more strongly by 9.7 percent in the third and 6.8 percent in the second quarter. Once again, the OeNB pointed to a noticeable overvaluation: The OeNB's fundamental price indicator for residential property in the third quarter indicated a 24 percent deviation in prices from the fundamental factors in Vienna, according to an analysis on Friday. Nationwide it is 17 percent. According to the OeNB, this has accelerated a development in the past few months that points to increasing overheating of the residential property market.
The third quarter was above average in Vienna. In the rest of Austria, single-family house prices recently climbed by 12.1 percent, after 10.6 percent; however, with a plus of 7.2 percent (after 2.6 percent in the second quarter), prices for used condominiums also increased significantly.
