Housing construction - 3. quarter of 2007

Construction of 12 580 dwellings was started in Q3 2007, i.e. by 7.5% more than a year earlier. A total of 8 731 dwellings was completed, which was by 44.3% more than in Q3 2006. There were 176 817 dwellings under construction, i.e. by 4.7% more year-on-year.
The volume of work on housing construction continued growing in Q3 2007, which was due to the following long-term factors:
- a favourable situation in the mortgage market; according to data produced by the Ministry for Regional Development, 59 550 mortgage loans were signed in Q1–Q3 2007 and the contractual principal stood at CZK 113 090 million (as against the total of 62 953 mortgage loans and contractual principal 115 119 million in 2006),
- developed saving-in-building-society market due to the growing number of loans for housing,
- situation about the VAT rate on dwelling construction work.

Dwellings started
In Q3 2007, 12 580 dwellings were started, which was by 7.5% more (+881dwellings) year-on-year. Increases were recorded for dwellings in multi-dwelling buildings (34.5%, i.e. +1 259 dwellings) and for converted non-residential spaces (57.3%, i.e. +86 dwellings). Decreases were observed in all the other categories. Dwellings started in family houses decreased by 2.4% (-149 dwellings).
In Q1–Q3 2007, 31 818 dwellings were started, which was a 0.3% decrease (-87 dwellings) in comparison to Q1–Q3 2006.

Dwellings completed
In Q3 2007, 8 731 dwellings were completed, which was a year-on-year growth of 44.3% (+2 682 dwellings). The number of dwellings completed in multi-dwelling buildings was twice as high (+1 610 dwellings) and dwellings completed in family houses rose by 44.6% (+1 304 dwellings).
In Q1–Q3 2007, 23 826 dwellings were completed, i.e. by 31.2% more (+5 660 dwellings) year-on-year.

Dwellings under construction
The total of 176 817 dwellings under construction as at 30 September 2007 was by 4.7% (+7 876 dwellings) higher year-on-year. The highest share in dwellings under construction was recorded for family houses (49.2%), the lowest for dwellings in community care service homes and boarding houses (1.5%).
Dwellings under construction are on the increase in the long term because numbers of dwellings started grow more rapidly than numbers of dwellings completed; dwellings whose construction has been suspended are also included.

Dwelling modernisations (upon building permit)
In Q3 2007, modernisation of 3 793 dwellings was completed, which was by 19.6% less year-on-year. In Q1–Q3 2007, 13 458 dwellings were modernised, which was by 2.0% less (-270 dwellings).

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Note
Contact: Vladimír Zikmund, phone (+420) 274 054 252, e-mail: vladimir.zikmund@csu.gov.cz
Data source: CZSO direct survey in planning and building control authorities
End of data collection: 30 October 2007
End of data processing: 6 November 2007
Data for Q1 2007 are final. Data for Q2 2007 have been exceptionally revised to correct wrongly classified dwellings completed in community care service homes which should have been included into dwellings in new multi-dwelling buildings. This revision does not affect the total number of dwellings completed.
Related publications: /1-ep-8
8205-07 Housing Construction, Q3 2007