Polish apartment prices continue to fall

The asking price for new apartment units across Poland fell by 10 percent last year, reports Rzeczpospolita.

Increasingly, supply is starting to outpace demand, with a number of finished dwellings sitting empty, no takers in sight. Customers have learned that flats still under construction are usually cheaper during residential pre-sales.

"The supply of new apartments amounts to some 44,000 units," Maciej Dymkowski, president of Tabelaofert.pl, told the newspaper.

"We are seeing a comfortable situation for the buyer: a wide selection, large pool of ready units and new projects arranged with an emphasis on smaller spaces."

And looks like there is some bullshitting estate agents on Polish Forums, 10% is a major fall.

And looks like there is some bullshitting estate agents on Polish Forums, 10% is a major fall.

When prices rise by 70-80% over a 2 year period and then fall by 10%, it is not a "major fall", it's a correction. Ask anyone that bought prior to 2006.

10% plus inflation is a 15% real world fall in value.

That sort of collapse stops people buying and locks in negative equity which is damaging to a housing market, when people stop buying, prices fall further, its a negative feedback loop. Banks respond too and cut down their lending exposure, prices fall further.

Again, I ask you to cite your sources for this information. I have seen no evidence of prices falling by 10%.

Here in Warsaw there is a new housing project planned for Milanowek area, 20 houses at 5.5 million PLN each, 8 have already been sold since the release in Jan 2011. So it makes you think about housing problems.

Again, for the 100th time, I suggest you look at my original post, there is a link.

Yes, it makes you think that it's irrelevant, even if they had actually been bought as opposed to 'reserved for future purchase'.

Ask anyone who bought at the beginning of the year. 10% is a major fall in prices. How many people bought after 2006, lets ask them and see what their attitude is. That sort of collapse stops people buying and locks in negative equity which is damaging to a housing market, when people stop buying, prices fall further, its a negative feedback loop. Banks respond too and cut down their lending exposure, prices fall further.

The prices have to continue falling,, bubbles always burst...It's a physical fact.

I still fail to see how you can make a "sweeping statement" that prices have fallen by 15%.

Do you not find it strange that nobody agrees with you?.

Dom Holdings, the largest housebuilder in Poland, recently announced that their sells last year were 75% up on the year before and expect to sell even more units this year. Profits are not so high but demand is still there.

When you buy something off plan it is always reserved for future purchase, you can't own something that has not been built in Poland.

When you buy something off plan it is always reserved for future purchase, you can't own something that has not been built in Poland.

Polish house prices expected to drop further

6th April 2011


According to a recent report by the Economic Institute of the National Bank of Poland, there is room for further decreases in the price of housing, Rzeczpospolita writes.

The report notes that developers have gradually become less optimistic about being able to earn a lot of money from selling houses. This is because the rising quantity of unsold residential real estate is forcing them to lower their rates.

Limited demand among buyers and a decrease in the availability of loans are quoted as the main reasons for price changes in the housing market.

This has not deterred developers such as Gant Development and JW Construction, who are both planning major residential investments this year.

.talk about stating the obvious!!!

if asking prices fell 10% then the sales prices must have fallen more than 10%.

It could just be that people are cutting the asking prices so as to get more people to look at their properties but have cut (perhaps completely) the amount by which they are willing to negotiate the price.

You are right, selling prices could have fallen even further but they were hidden.

It doesn't negate the fact the prices are falling in a very substantial way.

Plus, prices in Warsaw need to fall quite a bit more for younger folks to be able to buy them.

And how long is it going to take to fix the roads. They are pitiful and it will take decades.

Why don't you have a look instead of just jumping to false assumptions?

Not really. Anybody who bought before 2007 is still quids in and in a major way. And based on what a flat in my building is currently on the market for (and what I know for a fact the owner will accept as a sale price), my place has still tripled in value since I bought it in 2000.

According to that the S7 Krakow to Warsaw is never going to be built and neither is a single motorway going from north to south of the country.

The A1 will be completed sooner rather than later - there's your North/South motorway.

well its not in the timetable to come further south, stops 2/3rd the way down.