In some cities, the prices of apartments on the secondary and primary markets are… almost identical.
The largest differences, reaching nearly 4,000 PLN per square meter, are observed in Katowice and Szczecin. Meanwhile, in the Tri-City area, Warsaw, and Krakow, prices have nearly equalized. An even more intriguing situation can be seen in Rzeszów, where according to data from the National Bank of Poland, transaction prices on the secondary market are higher than those on the primary market.
“Information regarding the real estate transaction market for the second quarter of 2024 shows that prices on the secondary and primary markets have nearly equalized in cities where property values are the highest. This may indicate that the supply of new apartments and their availability in these cities is lower, which generates a significant increase in interest in secondary market apartments,” says Mirosław Król, a real estate market expert.
Warsaw, Krakow, and Gdynia have equalized housing prices, while Szczecin and Bydgoszcz show the largest disparities.
Experts acknowledge that it is natural for there to be a certain difference between prices on the secondary and primary markets. New apartments directly from developers are usually more expensive than those purchased from private owners who have already used the property. The standard difference is considered to be around 20-25%. In many cities in Poland, this difference persists. The equalization of transaction prices on the secondary and primary markets in the largest markets in Poland should be seen as a clear indication that the rise in housing prices is a fact, while there is no shortage of people interested in purchasing.
“Price fluctuations on the primary and secondary markets seem to be an increasingly common phenomenon. Just a year ago, in some cities, the price difference exceeded even 5,500 PLN, which was considered an anomaly and proof of how much the prices on the developer market outpaced the secondary market. Now we are seeing an equalization. In most cities, the price difference between the secondary and primary markets does not exceed 2,000 PLN per square meter,” says Mirosław Król, a real estate market expert.
The biggest disparities are seen in cities where demand for apartments is highest, and at the same time, price increases are the most dynamic. In Krakow, Gdynia, Gdańsk, and Warsaw, apartments on the secondary market cost almost as much as those on the primary market. Owners selling apartments are aware of the demand and do not intend to lower prices,” says Mirosław Król, a real estate market expert.
On the other end of the spectrum are smaller cities.
“In Szczecin or Bydgoszcz, the differences range from four to five thousand PLN. This is due to the relatively smaller pool of offerings on the primary market. Much also depends on the standard of the apartments available on the market. It can be expected that due to the announcement of the ‘Start Loan’ program, many offers have disappeared from the market,” says Mirosław Król.
Housing prices are unlikely to fall, but attractive offers on the secondary market are possible.
Will the near future bring price corrections for apartments? Real estate market experts have no doubts that prices will not suddenly start to decline. Much depends on the availability of mortgage loans and the supply of offers—both from developers and on the secondary market.
“Sales of apartments on the developer market are slower, but it is not in developers’ interests to lower their prices. Many companies, with very high margins, would rather wait for a time when prices rise or when consumers’ purchasing power increases. In this regard, the secondary market is more unpredictable. Attractive offers appear on the market, usually when the seller is simply forced to dispose of the property,” says Mirosław Król, a real estate market expert.
It is estimated that by the end of the year, price increases should slow down, but the dynamics of the real estate market will largely depend on whether the “Safe Mortgage 2%” program comes into effect or not.
Source: [CEO](https://ceo.com.pl/deweloperzy-dogonieni-przez-rynek-wtorny-w-niektorych-miastach-ceny-sa-juz-identyczne-76293)
