eleanoroconner
17 Dec 2008
Real Estate / House prices in Poland to drop more or rise again? [228]
I think this is a time to be more accurate about TYPES of property. From this article:
mamdom.com/polandproperty-polands_property_market_-_no_need_to_panic.h tm
"the property bubble will not burst. In the UK, the residential mortgage debt to GDP ratio had reached 83% by the end of 2006 (the latest fi gures available from the European Mortgage Federation), while in Poland it had grown (albeit very rapidly from a low base) to 8.3%. Total outstanding mortgage lending in Poland €41 billion, compared to €1,584 billion in the UK"
"Many developers who have built expensive luxury apartments in prime city centre locations are left with unsold units, as the demand for this type of property among rich Poles had been overestimated."
In other words smaller apartments are still continuing to do well. The large numbers of unsold units are the big stuff that should never have been built. It will take a while for that to work through the system and while it does developers will not be starting new projects. The result will be a shortage of supply in future years which will cause prices to rise again. Nothing new - happens in the UK everytime prices drop.
When all is said and done having a look at this page:
oferty.net/statystyki/122008.php
There is not much here, for Warsaw anyway, to suggest prices are rising or falling. Seems this city is holding steady despite everyone assuming prices are falling due to oversupply.
I think this is a time to be more accurate about TYPES of property. From this article:
mamdom.com/polandproperty-polands_property_market_-_no_need_to_panic.h tm
"the property bubble will not burst. In the UK, the residential mortgage debt to GDP ratio had reached 83% by the end of 2006 (the latest fi gures available from the European Mortgage Federation), while in Poland it had grown (albeit very rapidly from a low base) to 8.3%. Total outstanding mortgage lending in Poland €41 billion, compared to €1,584 billion in the UK"
"Many developers who have built expensive luxury apartments in prime city centre locations are left with unsold units, as the demand for this type of property among rich Poles had been overestimated."
In other words smaller apartments are still continuing to do well. The large numbers of unsold units are the big stuff that should never have been built. It will take a while for that to work through the system and while it does developers will not be starting new projects. The result will be a shortage of supply in future years which will cause prices to rise again. Nothing new - happens in the UK everytime prices drop.
When all is said and done having a look at this page:
oferty.net/statystyki/122008.php
There is not much here, for Warsaw anyway, to suggest prices are rising or falling. Seems this city is holding steady despite everyone assuming prices are falling due to oversupply.