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16th January, 2020

AKK debuts new 20-year bond today

State debt manager AKK will launch a new 20-year bond targeted at retail investors on Thursday, Portfolio reports.

The role of the bond, Hungary’s longest maturity instrument, will be symbolic, but it may be an important step towards extending the overall maturity of the debt stock, the website adds.

The new government security, to be auctioned every eight weeks, was unveiled with the AKK’s financing plan in December.

The new 20-year bond will be the fifth bond in addition to three-, five-, ten- and 15-year papers.

Total gross sales of forint-denominated government bonds are projected to reach Ft 2 trillion in 2020, down by 41% from 2019.

Proceeds from the 20-year bond are expected to reach Ft 121 billion this year, or 6% of the total, as the AKK expects to sell an average of Ft 20 billion of the bond in each of six auctions scheduled for this year.

Portfolio sees the average yield of the new bond at 2.5-3%. (portfolio.hu)
16th January, 2020

Bird flu appears in Hajdu-Bihar

The food safety authority Nebih identified the H5N8 strain of the bird flu virus on a second farm within three days on Wednesday.

The Nebih laboratory verified the presence of the disease at the Letavertes duck farm in Hajdu-Bihar county on Tuesday.

Officials began to kill the 115,000 ducks that may be infected with the virus.

Producers are afraid that many Asian countries will reject Hungarian goods, so they have to be sold somewhere in the EU at depressed prices.

The United Arab Emirates has banned imports of poultry and related products from Hungary and Slovakia.

The disease has also been discovered in Poland and Romania.

Wild migrating birds visiting a nearby lake may have been responsible for the appearance of the disease in Hajdu-Bihar.

The national head veterinarian ordered the slaughter of 53,000 turkeys and the quarantining of poultry throughout Hungary on Monday after bird flu was detected in a turkey farm in Komarom county. (hvg.hu; agroforum.hu; hirtv.hu; profitline.hu; napi.hu; origo.hu; index.hu)
16th January, 2020

Construction growth decelerates

Growth in construction sector output stood at 6.8% year-on-year in November, slowing down from 20.5% in October, the Central Statistics Office announced yesterday.

The monthly figure showed a 4.5% drop from October.

Over the first 11 months of 2019, construction output grew by 24.4%, as output reached Ft 4 trillion in absolute terms.

Construction of buildings was up 8% in November, lifted by construction of residential, cultural and industrial structures.

Civil engineering output was up by 5.7%, mainly in the form of road and railway developments.

Hungary’s construction sector showed stellar growth in the first half, but the second half produced a steady deceleration, which suggests that the sector is past its peak, Portfolio observes. This is reflected in the stock of orders, which was down by 8.3% in November, as many projects had been completed recently, the website adds.

The stock of new orders expanded by 24.7%, including 36% for civil engineering orders and 9% for construction of buildings. (portfolio.hu; napi.hu; tozsdeforum.hu; hvg.hu; mfor.hu; profitline.hu)
16th January, 2020

Foreigners boost November hotel data

The number of guest nights at Hungarian hotels with at least three stars was up 4.8% year-on-year to 2.1 million in November, the Central Statistics Office reports.

Overnight stays by foreign visitors increased by 8.7% to 1.1 million, while guest nights spent by Hungarians were up by 0.8% at 995,000.

The number of foreign tourists increased by 6.6% to 448,000, while domestic arrivals edged up 2.9% to 473,000 in November.

Hungarian hotels operated with a 60.5% occupancy rate, up from 58.1% one year earlier.

Revenue at commercial accommodations was up 10% to Ft 41.4 billion, including Ft 23 billon from room revenue.

Hungarians used Szechenyi recreational voucher cards to pay for Ft 2.2 billion of products and services at commercial accommodation in November, a 63% annual increase.

In the January-November period, total guest nights were up 8.3% at 29.3 million, split equally between domestic and foreign guests.

During that period, hotel revenue grew by 8.3% year-on-year to Ft 513 billion. (napi.hu)
16th January, 2020

Otthon Centrum lists cheapest and most expensive home sales

Although the property market showed signs of slowing down at the end of 2019, many records were broken last year, Portfolio reports, as real estate agency Otthon Centrum unveiled its list of the most extreme transactions for 2019 in terms of price or size.

The smallest flat sold by the company was a 6m˛ property, which was bought for Ft 6.8 million.

The largest property was a mansion covering more than 700m˛ in a village near Pecs, which cost less than Ft 24 million.

Price records were also broken last year. The most expensive family house was a 550m˛ dwelling with a 1,300m˛ garden in the Second District’s elite area. The price tag was Ft 750 million.

In Pest, a 101m˛ residence near St. Stephen’s Basilica sold for Ft 237 million.

Budapest’s 13th District has become a popular destination for home buyers. An 80m2 prefabricated flat near the Danube was sold for Ft 56 million.

The highest price per square metre was also registered in this district, when a residential property built in 2007 was bought for Ft 2.5 million per square metre.

The cheapest home sold was a 51m˛ flat in Ozd, Hungary’s least developed region, selling for Ft 415,000. (portfolio.hu)

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