delphiandomine
20 Jan 2012
Real Estate / Residential real estate values go down in Poland [455]
But this disconnect isn't actually seen in Poland. Right now, there are flats on offer in Poznan for 4,500zl/square metre next to tram lines - and the average wage is certainly around that level.
That sounds like a dodgy sale to raise hard currency - but it's not what I was talking about. Many of the cooperative-built flats were sold at the time of construction - in zloty. Muncipal housing (not the same thing) should never have been sold - and if she bought a flat in US Dollars, it was certainly some sort of quasi-legal operation and not "normal".
I don't doubt your story - in fact, it's very interesting - it would be curious to know who she bought the flat from.
Most actually could - there was a lot of surplus money in the system, caused by workers going insane every time price rises were announced. I don't remember the exact details to hand, but one huge problem that they had in 1980-1 was that the workers had a lot of cash, but nothing to spend it on. Sure, the Zloty was worthless outside of Poland - but inside Poland, it still had value. And the "cooperative" flats were sold in Zloty, not hard currency.
And yet they're worth a lot of money if they're in a good location.
It's the reason why they're holding their value while new blocks are falling in value - new blocks tend to be poorly located.
in other words, if all people can afford is old apartments far from tram connections, there is an issue of price. If the average price per square meter is 6,000-7,000PLN, and the average monthly wage is 4,000, don't you think there is a little disconnect there?
But this disconnect isn't actually seen in Poland. Right now, there are flats on offer in Poznan for 4,500zl/square metre next to tram lines - and the average wage is certainly around that level.
Mr D, thanks for your comments but I beg to differ on many points, firstly my auntie was offered a flat approx 35sq metres in the main street, of Gdnia, she showed me the paper work and I'm almost certain it was for 970 US dollars, that was in the early 80's, the place is probably now worth approximately 350,000 zl... The only way she was able to buy the flat was to ask a relative who was living overseas
That sounds like a dodgy sale to raise hard currency - but it's not what I was talking about. Many of the cooperative-built flats were sold at the time of construction - in zloty. Muncipal housing (not the same thing) should never have been sold - and if she bought a flat in US Dollars, it was certainly some sort of quasi-legal operation and not "normal".
I don't doubt your story - in fact, it's very interesting - it would be curious to know who she bought the flat from.
Now the point I was making is that most Poles could not afford to pay a high price for a flat so 970$ seemed to form a bench mark, remember foreigners were not allowed to buy real estate etc. So please don't say local Poles got flats for peanuts, must couldn't afford to pay for them anyhow.
Most actually could - there was a lot of surplus money in the system, caused by workers going insane every time price rises were announced. I don't remember the exact details to hand, but one huge problem that they had in 1980-1 was that the workers had a lot of cash, but nothing to spend it on. Sure, the Zloty was worthless outside of Poland - but inside Poland, it still had value. And the "cooperative" flats were sold in Zloty, not hard currency.
One other point is that those flats which hold thousands of people are in fact worth nothing as it has no real estate value (minimal) and all they worth is a few bricks and a few windows.
And yet they're worth a lot of money if they're in a good location.
It's the reason why they're holding their value while new blocks are falling in value - new blocks tend to be poorly located.