Polish apartment prices continue to fall

I gave you two in Warsaw.

Data on January 2012 real estate prices Poland.

Mamdom hahhaha, I think I'll pass on that one.

So does it mean Polish property has performed so badly? Actually the reality is probably that it has performed a little too well compared to neighbouring countries.

Over the border many foreign investors are sitting in negative equity and those who have borrowed to buy simply cannot sell

So Poland is one of the few countries where buyers can actually sell and get their money out should they need to. Although many who I have spoken to are reluctant to do so.

the rents are affordable to the local population

Around two years ago someone buying an apartment for 500,000 PLN would have needed to transfer £83,000 from the UK. If they sold now for the same price the funds that would end up in their sterling bank account would be £111,000. Now £28,000

So does it mean Polish property has performed so badly? Actually the reality is probably that it has performed a little too well compared to neighbouring countries.

So in Poland paying 10 times your salary for a one bedroom flat, or 15 times your yearly salary for a house

a) Source for the claimed fall being between 11.5% and 17.5%? Or do you not bother with sources?
b) Given that inflation in Poland since 2008 has varied between 2% and 5%, perhaps you could present a calculation showing how that interest rate causes a fall of 11.5% to become a fall of 24.7% in just three years? How does an interest rate averaging about 3% cause a fall to more than double?

Looking forward to your reply....

Inflation adjusted (inflation assumed 4.2% in 2012), this equates to a fall of between 20.5 % (assuming 4% fall in 2012) and 25.4% (assuming 10% fall in 2012) from 2009 til the end of 2012.

The fall in absolute numbers has been 11.5-17.5% so far. With inflation the fall has been to 24.7% to 29%.

2008: +5%
2009: 0%
2010: -3%
2011: -5%

b) Given that inflation in Poland since 2008 has varied between 2% and 5%, perhaps you could present a calculation showing how that interest rate causes a fall of 11.5% to become a fall of 24.7% in just three years?

So the real fall over those three years is -3.2425%

We were discussing falls from peak. Why would you include a year before the peak? its simply irrelevant and idiotic, quite frankly.

If you want hard numbers, -13.5% fall from peak at the end of 2011 is undeniable.

You also ignored inflation.

Er, your figures show that it is actually 7.85% without inflation.

I read yesterday that there are over 50.000 unsold apartments in the main 6 cities.
Also banks refusing mortgages unless couples have a joint income of 8000 zloty, net a month.

Wages in Poland's private sector grow 8.1 percent

20th February 2012

The average wage in Poland’s private sector rose by 8.1 percent year-on-year in January, well above market forecasts of 4.9 percent, and significantly more than in December, when wages grew 4.4 percent, according to the Central Statistical Office.

“It is difficult to explain what the source of such a substantial acceleration of wages was without detailed data, but in our view this may be due to payment of bonuses or wage rises in a big company and (only partially) to [a] hike of [the minimum] wage, which jumped from zł.1,386 to zł.1,500 in January,” Bank Zachodni WBK analysts wrote in a market report.

Employment growth in the private sector slowed to 0.9 percent year-on-year in January, from over 2 percent y/y a month earlier. In January 2011, the figure stood at 3.8 percent y/y, showing that there has been a substantial slowdown in the Polish labor market, according to BZ WBK.

28 m2 doesn't sound so bad compared to 78 sq ft in New York

In Poland(in sh1tholes cities) there are large families of 4 and 5 living in 50 m apartments. That is bad.

In Poland(in sh1tholes cities) there are large families of 4 and 5 living in 50 m apartments. That is bad.

large families of 4

I read yesterday that there are over 50.000 unsold apartments in the main 6 cities.
Also banks refusing mortgages unless couples have a joint income of 8000 zloty, net a month.

Paying 750 $ when the average wage in New York is 935$; not so bad for a classy place like NY

average wage in New York is 935$

(-5.29%), Netherlands (-5.77%), Slovak Republic (-6.88%), Portugal (-7.78%), Spain (-9.27%), Athens, Greece (-10.43%), and Warsaw, Poland (-10.55%).
Unhappy Ireland still holds the title of ‘world’s weakest housing market’, with house prices plummeting by 18.08% in 2011. With low transactions, constrained mortgage lending, and an uncertain economic environment, Irish house prices are likely to continue falling in 2012.

• In Poznan, property prices plummeted by 44.08% (44.18% in real terms).

That's absolutely bollocks