Sales of flats fell by half
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The falls in apartment sales in Q2 2020 were severe and related to all major local markets in Poland. Poznań turned out to be the most stable in terms of sales. While in other voivodship capitals the declines in annual terms ranged between 37-55%, in Poznań it was only 10%. However, lower demand for housing has not moved prices. In all markets, it is more expensive year-on-year, in Kraków by as much as a quarter – according to the data of redNet Property Group and CBRE.
The data of redNet Property Group and CBRE show that compared to the year, the sale of apartments decreased in all the most important markets, i.e. in Warsaw, Kraków, Tricity, Wrocław, Łódź and Poznań.
– In the three cities, sales dropped by as much as half in the second quarter. It concerns Warsaw, where 55% fewer flats were sold than a year ago, Łódź, where the decrease was 50%, and TriCity with a 48% decrease. Of course, this is a direct consequence of the coronavirus epidemic. Difficult contact with clients, remote work and the lack of opportunities for meetings had a negative impact on the housing market and made the work of sales offices more difficult – says Robert Chojnacki, co-owner of redNet Property Group.
Apart from the relegated podium, there were 3 cities: Wrocław, Kraków and Poznań. Wrocław saw a decline in sales by 41% year on year and 41% quarter on quarter. In Kraków, 37% less real estate was purchased compared to the previous year (42% quarter to quarter). Poznań stands out among the largest cities in terms of the real estate market, because unlike other provincial capitals, sales did not drop dramatically. In Poznań, 10% less flats were sold compared to the previous year and 11% less compared to the quarter.
– The beginning of the coronavirus epidemic has aroused hopes among potential home buyers for price drops. It turns out, however, that not only are there no discounts, but in several cities, prices in the second quarter increased not only year on year, but also compared to the previous quarter. These increases were not large, but for example in the Tri-City in June prices were 4.5% higher than in March. This shows that the epidemic has not left its mark on housing prices. However, there is a clear decline in demand. In the second quarter, both individual investors and buyers of apartments for their own needs withheld decisions until the situation stabilizes. It can be expected that in the coming months we will see a rebound, although the trend compared to the year will continue to decline – says Agnieszka Mikulska, housing market expert, CBRE.
People who planned to buy an apartment were hoping that the coronavirus epidemic would affect the price level. It turns out, however, that nothing like this happened. In the second quarter of this year, you had to pay an average of PLN 11,100 per m2 of real estate offered in Warsaw. This is 10% more than a year ago and the same as at the beginning of this year. Prices rose more strongly in the Tri-City and Wrocław – in both cities by 12% year on year. For an apartment in the capital of Pomerania in Q2 of this year you had to pay PLN 10,400 per m2, and in the capital of Lower Silesia, PLN 8,900 per m2. In Łódź and Poznań, prices increased by 7% and 6%, respectively, year on year. Potential buyers had to pay PLN 6,300 per m2 of a flat in Łódź and in Poznań – PLN 7,800 per m2.
The highest price increase took place in the capital of Małopolska – in Kraków, one meter of a flat costs as much as PLN 9,700, 21% more than a year ago, but 0.5% cheaper than in the first three months of the year.