Flat prices in Katowice (second quarter of 2015)
Text from 2015. Laws, rates and prices may have changed since then. Ask an agent
Unlike in the previous period, in the second quarter of 2015 average asking prices of flats on the primary market have stabilised. The picture is different for the average transaction price, which continues to rise, although compared with last year it is considerably lower.
This is particularly visible when analysing market prices of flats with an area larger than 60 m2. Their current average value is considerably higher than in previous months. On the other hand, according to National Bank of Poland data, the price of flats with a smaller area has not changed much, remaining close to that of the previous quarter.
The current situation on the primary property market is above all a result of the government's "Flat for the Young" (Mieszkanie dla Młodych, MDM) programme. Incidentally, one of the rules of the programme is a price limit for the property being supported. The price ceiling imposed from above is currently 1.3% higher than in the previous quarter, or more precisely 4,773.35 PLN/m2.
The "Flat for the Young" programme, described at greater length in the previous article, has undoubtedly contributed to increased demand on the primary market. By June about 970 loan agreements had been concluded, or 3.9% of the national total. In Katowice alone as many as 257 applications related to MDM were submitted.
The Monetary Policy Council also contributed to the increased availability of mortgage loans. The decision to keep interest rates at a low, constant level helps to stabilise mortgage interest rates. Current interest rates are: reference rate – 1.5%, Lombard rate – 2.5%, deposit rate – 0.5%, bill rediscount rate – 1.75%.
Average asking and transaction prices of flats on the primary market in Katowice [PLN/m2]
Source: Flash information from the National Bank of Poland Regional Branch in Katowice, Statistics and Foreign Exchange Department, The residential property market in Katowice and in selected cities of the Silesian agglomeration – Q2 2015.
The situation on the secondary market is completely different. Current average asking prices of flats are higher than the average for the previous quarter, but considerably lower compared with last year. The opposite is true of the average transaction price, which is much lower than in previous months.
It should also be mentioned that flats of 40 to 60 m2 and of 60 to 80 m2 currently cost considerably less. Smaller flats on the secondary property market, on the other hand, are priced similarly to the previous period.
As for the other data given in the previous article, it has not changed much since then.
Average asking and transaction prices of flats on the secondary market in Katowice [PLN/m2]
Source: Flash information from the National Bank of Poland Regional Branch in Katowice, Statistics and Foreign Exchange Department, The residential property market in Katowice and in selected cities of the Silesian agglomeration – Q2 2015.
