Apartment Owners Become More Realistic and Begin Lowering Prices.
The third quarter of 2024 brought some slightly better news for buyers. For the first time in a long time, the average asking prices of secondary market apartments in provincial cities more often fell than rose, both for studios and larger apartments. “Sellers, seeing the difficult situation in the market, are finally adjusting their price expectations,” says Rafał Bieńkowski from the advertising portal Nieruchomosci-online.pl.
The analysis carried out by Nieruchomosci-online.pl covered 18 provincial cities. It turns out that in the third quarter of this year, the average ask prices for studios decreased in 8 provincial capitals, two-room apartments – in 6, and three-room – in 8. There were also many cases of price stabilization at the level of the second quarter.
“Especially in the case of two- and three-room apartments, on one hand one can count the cities where the last quarter brought an increase in the average asking price,” says Rafał Bieńkowski from Nieruchomosci-online.pl.
Apartment Prices in Warsaw Have Frozen
The average asking rates for studios fell in some cities compared to the second quarter by 2-6%. A correction occurred in Białystok, Gorzów Wlkp., Kraków, Łódź, Opole, Rzeszów, Szczecin, and Wrocław. Meanwhile, in Warsaw, Bydgoszcz, and Toruń, prices have stabilized – they practically did not change as fluctuations up or down by less than 1% should be interpreted.
The average asking price per meter of a two-room apartment is lower in some cities by 2-7% quarter over quarter. In this case, the sellers were just as willing to back down in Białystok, Olsztyn, Opole, Rzeszów, Szczecin, and Toruń. Importantly, in as many as eight other provincial cities, prices have stalled at the level of the second quarter. This applies to Gdańsk, Katowice, Kielce, Kraków, Łódź, Warsaw, Wrocław, and Zielona Góra.
In the case of three-room apartments, the quarterly corrections were slightly smaller – down by 1-3% – but also prevailed, as they occurred in Białystok, Katowice, Kielce, Łódź, Olsztyn, Opole, Rzeszów, and Szczecin. The average asking price slightly increased only in Bydgoszcz and Lublin. In the remaining eight cities, prices have frozen, as fluctuations were cosmetic, less than 1%.
“What’s interesting, there are several cities that ‘lit up’ green in all the apartment sizes we analyzed last quarter. Białystok, Opole, Rzeszów and Szczecin are the locations where the average asking price dropped for both studios and two- and three-room apartments,” adds Rafał Bieńkowski.
No Price Increases Expected at Year-End
“This is a significant change compared to what we observed in the first half of the year when reductions were rare and timid. There is currently some disorientation in the market among both buyers and sellers. Some people don’t know what to do waiting for the housing program announced by the government. Others are waiting because they are counting on the interest rate reduction promised for next year. Therefore, we should not interpret the current situation as a downturn in apartments. Sellers, seeing the difficult situation in the market, are finally adjusting their price expectations, gradually understanding that without discounts there will be no customers”, comments Rafał Bieńkowski from Nieruchomosci-online.pl.
Real estate agents’ forecasts suggest that in the fourth quarter of this year, asking prices for apartments will also not increase. In a mood survey conducted by Nieruchomosci-online.pl, only 29% of agents anticipated rate increases.
Source: https://ceo.com.pl/raport-po-iii-kwartale-ceny-mieszkan-z-rynku-wtornego-nizsze-o-2-7-proc-80496
