Apartment prices lower, but higher. How to explain this?

Why is the price of new apartments rising despite discounts and promotions? Warsaw is a perfect example. TableOfert.pl analyzed almost 10,000 offers and almost 200 investments and noticed that:

• cheaper apartments within a given investment sell better, and more expensive ones are offered, which increases the price of the entire investment,

• cheaper investments are sold, so their share in the offer decreases, which increases the price of the entire offer on the market,

• above all, projects with prices higher than the current offer enter the market.

Even though developers reduced their offer price lists in several projects, the average price per square meter in Warsaw increased by 0.8%,

Developers are introducing more expensive apartments to the offer

So how do we explain the overall price increase? It’s an effect of statistics. In recent weeks, developers have introduced so much more expensive apartments that they have increased the overall rate.

The largest increase in the average price was recorded in Kielce (+7.0%), Kraków (+4.3%), Wrocław (+2.1%), Gdynia (+0.9%) and Poznań (+0, 2%), where projects in more expensive locations were introduced for sale. It was similar in large agglomerations – Kraków (excluding Kraków: +2.5%), Tricity (excluding Tricity: +1.5%) and Silesia (excluding Katowice, Chorzów, Gliwice and other cities with county rights: +1.0% ).

In turn, price increases in Toruń (+1.0%) and in Bydgoszcz (+0.3%) were caused by the fact that cheaper apartments were sold, i.e. the average price per square meter of the entire offer – excluding the cheaper apartments sold – increased.

Apartment prices. Where is it cheaper, where is it more expensive?

In Szczecin, Radom and in the Poznań (except Poznań) and Wrocław (except Wrocław) agglomerations, the average price of a square meter of an apartment almost did not change (changes within 0.1%).

In Lublin (-1.4%), Łódź (-1.1%), Rzeszów (- 0.9%), Gdańsk (- 0.6%) and in the Warsaw agglomeration (- 0.2% excluding Warsaw) where There was a decline in the average price per square meter, the main reason for this decline was the new offer at lower prices.

– The general conclusion is therefore as follows: prices are stable, and changes result almost exclusively from changes in the structure of the offer. Despite the horrendously high costs of mortgage loans in Poland, buyers, provided they are positively verified by banks, decide to buy an apartment taking advantage of available promotions. However, mainly cheaper premises are purchased, which leads to the average price of a square meter on offer increasing – explains Robert Chojnacki, founder of the website TableOfert.pl.