Prices leap as supply falters

with Hamburg's new-build apartments

Press release | Hamburg

Figures complied by Grossmann & Berger revealed that in 2014 the average price for a new-build apartment in Hamburg rose some 16% above the level seen in 2013, from € 4,120 to € 4,770/m² of living space. This trend was even more pronounced in Hamburg’s central locations*. Here prices moved up by 21%, from € 4,830 to € 5,850/m² of living space. “This fact becomes all the more interesting when one realizes that in the premium districts of HafenCity, Harvestehude and Uhlenhorst no newly built apartments at all came onto the market in 2014,” remarks Frank Stolz, head of the New Builds department of Grossmann & Berger. Taking all city districts together, 1,634 new-build dwellings were offered for sale in a total of 89 projects. Year on year the number of units thus fell by 27%. The central locations closely mirrored this trend, where the number of units fell by 18% to 726 and the number of projects dropped by around 22% to 29.
HH: bigger and pricier, central locations: smaller and pricier
In 2014 the average newly built apartment within Hamburg city limits measured 94.1 m², had 3.1 rooms and sold for € 462,000. It was thus 6.7 m² larger than the 2013 average and cost € 81,000 more. In central locations the average apartment had 3.0 rooms and measured 94.1 m², selling for an average price of € 583,000. Year on year, the average new apartment in central locations was smaller by 2.6 m² yet cost some € 107,000 more. “The trend towards smaller new-build apartments continued, although the changes were no longer as pronounced as they were between 2012 and 2013,” says Stolz. The steady decline in the average number of rooms was unchanged. Looking at the entire city, there has been a continuous slide from 3.6 rooms in 2009 to 3.1 rooms in 2014. During the same period the average number of rooms in centrally situated apartments fell from 3.4 to 3.0, despite a brief spike in 2012.
Outlook for 2015: prices continue to trend upwards
People looking for an apartment in central parts of Hamburg find little choice, as few stock units come onto the market, and often those that do fail to meet the requirements; generally speaking, the problem remains that too few apartments are being built. “In such a market, if the people looking for an apartment are very choosy about location, infrastructure and centrality, they will, sooner or later, decide to invest in a new-build property of their own. The supply of superior new-build apartments for rent, especially in central locations, is practically non-existent,” Stolz explains. “However, buyers who have to borrow money for their new-build apartment have been barely affected by the rising prices in central locations in view of the renewed 35% drop in mortgage interest rates. In 2015 we expect to see further rises in the price of new-build apartments, and the rate of increase will depend on the number and locations of new units.
* For this survey of new-build units, Grossmann & Berger counts the following 21 districts, conflated into 16 residential areas, as central locations. Alsterdorf, Altona-Altstadt/Altona North, Barmbek South, Eilbek/Hohenfelde, Eimsbüttel/Hoheluft West, Eppendorf/Hoheluft East, HafenCity, Harvestehude, Lokstedt, Othmarschen, Ottensen, Rotherbaum, St. Georg, St. Pauli/Sternschanze, Uhlenhorst and Winterhude.
The detailed survey of the property developers’ market will appear in March 2015.
In the meantime, the version on our website shows you the data for the year 2013.
Permission is given to print the attached charts (source: Grossmann & Berger GmbH).

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Britt Finke

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