REAS summed up the results of its Q2 2014 primary residential market monitoring study. Developers have released a record-breaking number of new dwellings onto the market. Despite very good sales, the number of dwellings on offer has increased for the first time in two years.
The number of dwellings launched for sale significantly increased for the third consecutive quarter – according to the results of the market survey carried out by REAS, more than 14,000 dwellings were released to the market between April and June in the six urban centers with the largest turnover on the primary residential market (Warsaw, Kraków, Wrocław, Tri-City, Poznań and Łódź), up by nearly 50% as compared to the previous quarter. The total number of transactions decreased by around 6% as compared to Q1 2014, amounting to nearly 10,400 units sold. This means that the high volume of transactions prevailed for the fourth consecutive quarter, which has not been noted on the housing market since the boom in early 2007.
Mr. Kazimierz Kirejczyk, REAS Managing Partner, comments on the residental market: “Very high sales in three consecutive quarters starting from Q3 2013 convinced developers to accelerate the launching of new projects in Q2 2014. The increase in the number of dwellings available for sale is advantageous for homebuyers, who can now enjoy a wider choice and stable prices. At the same time, the present prices allow developers to generate satisfactory financial results, which makes it easier to take out loans. The banks have found a way to provide financing to a number of developers which meet the requirements of the Developer Act, although many dwellings on sale are still not protected with escrow accounts”.
“In the last four quarters, nearly 41,900 dwellings were sold on the analyzed markets, up by 16% as compared to record-breaking 2007. The high volume of sales means that dwellings were purchased by various categories of buyers. These include both buyers taking advantage of the MdM subsidy program as well as those who purchased dwellings within the thresholds but without receiving subsidies. Homebuyers included both customers paying in cash as well as those taking out mortgage loans. The buyers also still included those purchasing dwellings as investments, i.e. for rental purposes. High sales volumes were supported by low interest rates and relatively low prices as well as the prevailing opinion that the supply is starting to shrink and prices are starting to increase” – added Mrs. Katarzyna Kuniewicz, Research Director in REAS.