The FINANCIAL -- In June 2011, the secondary housing market recorded continuing price declines, which were the most severe in Opole and Wroclaw, according to a report prepared by Metrohouse, Expander and Szybko.pl.

June was the fourth straight month in which asking prices for pre-owned apartments dropped. Compared to May 2011, cities which saw the biggest declines were Opole (2.2% down to PLN 4,200 or €1,040 per m²) and Wroclaw (1.4% down to PLN 6,340 or €1,570 per m²), while, relative to June 2010, the largest decreases were recorded in Katowice (down by 7.4% to PLN 3,890 or €962 per m²), Wroclaw and Olsztyn (down by 5.7% to PLN 6,340 or €1,570 and PLN 4,500 or €1,114 per m², respectively). However, on an annual basis, secondary housing prices increased in Lublin (0.7% up to PLN 5,035 or €1,246 per m²) and Sopot (4% up to PLN 10,470 or €2,591 per m²). Compared to prices for the corresponding period of 2010, June 2011 prices for 15 cities covered by the analysis were lower by 3.1% on average.

The report demonstrates that the supply of secondary housing units significantly exceeds demand and further price declines should be expected, especially in view of impending changes to the “Family’s Own Home” scheme. These changes can have an effect on both buyers, who will want to acquire flats before the changes enter into force and use subsidised loans, and sellers, who will decide to reduce prices, fearing that selling a flat a few months later can be even harder.

There were no major changes to the structure of housing supply in June 2011. In Warsaw, the share of flats priced at PLN 10,000-11,000 (€2,475-2,723) per m² slid from 16% to 5.5%, while in Wroclaw most flats had a price of PLN 6,000-7,000 (€1,485-1,733) per m², but their share dropped by 6% from May. Poznan had more apartments priced at PLN 4,000-5,000 (€990-1,238) per m². Olsztyn recorded a significant change as the proportion of dwellings with the price in the PLN 5,000-6,000 (€1,238-1,485) per m² range decreased from 33% to 13%.

Related Stories

• The Ritz-Carlton, Montreal to Open as Second Canadian Jewel in the Hotel Company Portfolio
• DoubleTree by Hilton Opens Hotel in Downtown St. Paul, Minnesota
• IHG signs first Hotel Indigo in Wales