In light of the decreased interest in apartments and the extending sales period, some owners are reducing their offering prices or showing a greater willingness to negotiate. Currently, the transaction prices are commonly 5-10 percent lower than the listed prices. Those with cash at hand can afford harder negotiations. Their activity is similar to what was observed in 2023, according to a sentiment analysis conducted by the advertising site Nieruchomosci-online.pl.
What are the common differences between transaction and listing prices in the secondary market? 1,3 thousand brokers from all over Poland answered this question in a sentiment analysis conducted by Nieruchomosci-online.pl in the third quarter of the year.
“From brokers’ responses, it appears that currently, the price cuts in the secondary market are usually by 5-10 percent. Larger discounts usually apply to larger apartments or properties that are unusual for varied reasons,” said Rafal Bieńkowski from Nieruchomosci-online.pl.
“Agents often emphasized that the listing price is only a starting price and that most transactions involve a price decrease. For instance, a representative of a large office in Gdańsk informed that in his case, 90 percent of transactions are finalized with a price lower than the listing price. Sellers are increasingly understanding that without agreeing to negotiations, it may be difficult to find a buyer,” Bieńkowski added.
A sentiment analysis by the advertising site coincides with the most recent data from the National Bank of Poland. According to the central bank, the difference between listing and transaction prices in the secondary market in provincial cities are usually up to 10 percent, including Białystok (-7 percent), Bydgoszcz (-10 percent), Kielce (-7 percent), Kraków (-10 percent), and others. The exceptions were four large cities where the gaps were larger: Warsaw (-16 percent), Gdańsk, Katowice (both -12 percent), and Poznań (-11 percent).
Brokers believe the transaction price reflects the real value. Pawel Bielecki from the agency ArtHome Nieruchomości, who took part in Nieruchomosci-online.pl’s survey, comments: “The high listing price is often a marketing strategy of the sellers, who hope to encounter a buyer willing to pay a higher amount. But eventually, the transaction price is the result of compromise and negotiations, therefore it reflects the real market value of the apartment.”
Despite the stagnant housing market, cash buyers are at a significant advantage. According to research by Nieruchomosci-online.pl, the home buying financial situation in 2024 has not changed significantly compared to 2023. Only 14 percent of brokers felt a reduced number of fully cash transactions in the case of single-room apartments and 28 percent for larger apartments.
In both single-room and larger apartment segments, 40-60 percent and 20-40 percent were the most commonly indicated proportions of cash transactions. Maciej Miszkiel from Freedom Nieruchomości Warszawa Śródmieście, who took part in Nieruchomosci-online.pl’s survey, predicts that the high offer on advertising portals will persist, with transactions remaining constant, albeit lower than in previous quarters.
Source: https://managerplus.pl/5-10-proc-najczesciej-tyle-mozna-wynegocjowac-kupujac-teraz-mieszkanie-na-rynku-wtornym-13203
