Looks like there's some new found optimism among some sellers. I heard last week that a friend of a friend lost a flat of around 300 000 -- someone offered more money and the agreement was torn up by the seller.
Although I'm seeing quite a few flats and houses at lower prices (primarily the ones that have been for sale for a while) I am also seeing some obvious optimism in some sellers. Recently a seller told me to shove my offer up my d**a just a few days after agreeing a price with me. It's not been sold to anyone else, but they obviously now think it will be. So, Perhaps the Poland government is introducing new schemes, more MDM or something, to encourage this optimism? Or maybe there's hope of an interest rate cut in response to deflation?
Whatever the reason, I wasn't hugely surprised to find this rather dramatic revision upwards in a flat's asking price over just a few months:Flat S Wroc:
April asking price 600K
Now, asking price 850K
(if you doubt it's the same flat, just check the tiles in the bathroom and then the art on the wall in the bathroom to the right of the washing machine)
What's that, nearly 50% more on the asking (not sold) price in just a few months...?
Although am still seeing ads declaring 'new' (ie lower) prices on some flats and possibly houses, recently there are some very ambitious prices in new listings. Would seem to be some increases, many of which seem almost absurd. I can only guess that the newspapers are pumping out rising price stories or the credit taps are on full. Perhaps some of the properties are owned by Poles in Eire, which is apparently booming with serious growth, according to news reports. I guess if you're living in a booming economy, you're tempted to superimpose that on the apartment/house that you want to sell back home? I am of course a mere amateur, purely guessing and merely offer that as one possible explanation, if the newspapers and home [Poland] economic 'news' are not the obvious catalyst.
It is clear, however, that Wroclaw seems much busier than ever before. The buzz has got louder, although how widely inclusive that is may be open to question. I am not a beneficiary of that buzz myself, sadly.
And on the other hand, the last new (primary) apartment on a quality development is still sticking and unsold despite a cut in price of something like 12% in the past 3 weeks, I am reliably informed. I won't say where but in a good part of town where some of the properties are for sale for higher prices on the same estate or adjacent (but I think the same developer built them and some are now for sale on the secondary market).
So, I think I have to concede I don't really know what's going on! Mixed messages from the market and perhaps there are patches of activity with a bounce here or there due to optimism based on something or the other. Whether these are translating to sales I don't know. I can say the agents seem busy somewhere and often too busy to help with enquries. Make of that what you will. It could be they are selling lots or it could be they are delivering parcels. I can't come to any conclusions now, there are so many conflicting signs.
When I go past one of the main new estates in S Wrocław at night, most of the lights seem to be off, suggesting a low occupancy rate. Yet the agents say they let 18 flats there with none available now, and prices reduced on the remaining 'few' flats. So, who has bought but not moved in? These flats have supposedly been mostly all sold for many months now, perhaps 6 Yet drive past and almost every window (about 95%) is dark. Seems a bit inconsistent with the idea of them being sold. Average prices 350 tys. 200 flats or more.
Another new estate nearby, all flats are definitely sold. Average price 300 tys. 45 flats.
Another new estate in Partynice, 7 or 8 flats still unsold out of 500 flats, 1-2 years after completion. Average price 350 tys.
Another estate on the edge of S Wrocław not far from Partynice, and here all but 5 of over 100 houses are apparently sold. Average prices 800 tys.
It could be that Poland's government subsidies for buyers of new homes is having a positive effect on some flats within the size constraint, yet I think houses are outside of the subsidy, and they are still apparently mostly sold at the estate above.
Agents are increasingly simply failing to phone back when my Polish speaking friend tries to make appointments to view homes. This indifference to buyers would, if sellers were keen to sell, be very bad news for sellers. But of course it would seem to suggest that buyers are increasingly less important, would it not? These are different agents that I've not previously dealt with so cannot say they are tired of showing me places! Indifference and agents not bothering is far from unusual here.
It's likely a mixed picture, with some properties coming to market at what might be increased prices. Others reduced in price after not selling. One flat that I can't help but notice was 5% lower 18 months ago before rising 5%, then reduced to that price again 2 months back, and now 5% higher again. Still unsold.
This house has risen in asking price over the last 14 months (from 799 tys to 833 tys)
2013 approx. Q3 otodom.pl/luksusowy-dom-id20612320.html 799 000
2014 Sept otodom.pl/dom-wroclaw-klecina-330m2-6-pokoi-833000-pln-id30394453.html 833 000
although now it might be 0% buyer fee
0% prowizji od kupującego
and billed as 'negotiable' of course. There is some movement towards not charging buyers a commission fee but it's still in its infancy in Wrocław. (Most agents still try to charge 1-2% and sometimes more.)
Now 375 tys olx.pl/oferta/wroclaw-fabryczna-oporow-71m2-4-pokoje-1-pietro-2-garaz-2004r-CID3-ID54bu1.html#3671d7495c
Different agent 407 tys1 week ago olx.pl/oferta/74-m2-4-pok-oporow-mieszkanie-z-atutami-CID3-ID5i0uw.html#3671d7495c
Doubt it's the same flat? Just check the white kitchen cupboard doors, the big silver-coloured worktop object that looks like a large football trophy, and of course the description and size. It's definitely the same flat. I have seen prices go down and then back up in a matter of weeks before, perhaps it's for a short period when sellers have found somewhere else and are trying to secure the other place they want to buy. Once the other purchase is lost the price may revert back up. Just a theory, could be wrong.