Market analysis of the apartments in the centre of Cracow Property Valuers : Elżbieta Hołda, Marek Wojtyna Cracow 2006

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Asher Reeves
8 years ago
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1 APARTMENT S MARKET IN CRACOW AREA Criteria of analysis This document analysis the market transactions of the apartments in the very center of Cracow in the period of January 2005 June The monitoring of the transactions covers the area limited from the northern side of Słowackiego and J. Prandoty street and from the east the Farmacetów, Sypniewskiego nad Cystersów street. The southern border of the analysed areas is Vistula river and the western border is Krasińskiego and Mickiewicza street. The transactions of the apartments below 2000 PLN per 1m 2 as well as the apartments sold by the municipal authorities n Cracow were excluded from this analysis. Introduction In the analysed period the 565 transactions of the apartments of the total value PLN were registered. The prices of the apartments ranged from 4600 PLN ( basement, Kremerowska street) to PLN ( apartment, Piłsudskiego street). The average price for the apartment was PLN and the average price for 1m 2 was PLN. The most expensive apartment was located at Saint Anny street and the price was PLN per 1m 2. chart 1. Distribution of prices of the 1m 2 of the apartments in the period of The growth trend of the prices of the apartments in the period of is dynamic and reached 28%. 1/6

The southern border of the analysed areas is Vistula river and the western border is Krasińskiego and Mickiewicza street.

2 The 1m 2 price Market analysis of the apartments in the centre of Cracow In the 1 st half of the 2006 the average price of the 1m 2 rose 21% in relation to the 1 st half of the 2005 and amounted in 5906 PLN. It shows a very significant price increase compared to 2005 where the average prices of the 1m 2 were relatively stable and amounted in the1 st and 2 nd half of the PLN and PLN respectively. chart 2. Development of the average apartment price per 1m 2 in the period of /6

It shows a very significant price increase compared to 2005 where the average prices of the 1m 2 were relatively stable and amounted in the1

3 The amount of sold apartments on the secondary market In the 1 st half of transactions on the secondary market were registered which shows a substantial decrease compared In the 1 st and 2 nd half of and 228 transactions were registered respectively. The decrease of the number of the transactions in the 1 st half of 2006 was caused by the luck of offer. Most of the owners delayed the decision to sell their apartments which strengthen the price increase intensified by the dynamically growing demand. In the 2005 the growing offer of the apartments on the secondary market balanced the market demand smoothening the price increase. chart 3.Amount of sold apartments on the secondary market in the period of /6

Most of the owners delayed the decision to sell their apartments which strengthen the price increase intensified by the dynamically growing demand.

4 The change of the average size of the apartment The average size of the apartments sold in the 1 st half of 2006 increased compared to the 2 nd half of 2005 by 4,6 m 2 and amounted in 66,2 m 2. Compared to the 1 st half 2005 where the average size of sold apartments was 63,8 m 2 the growth was equal 2,4 m 2. chart 4. Change to the average size of the apartment in the period of ,2 61,6 63, The price The average purchase price in the centre of Cracow in the 1 st half of 2006 was PLN. It represents the growth of 30,6 % compared the 2 nd half In the 1 st and 2 nd half 2005 the average prices of the apartments were stable and amounted PLN and PLN respectively. chart 5 Change to the average price of the apartment in the period of /6

2006 66,2 61,6 63,8 0 20 40 60 80 The price The average purchase price in the centre of Cracow in the 1 st half of 2006 was 401 465 PLN. It represents the growth of 30,6 % compared the 2 nd half 2005.

5 Sales characteristics Market analysis of the apartments in the centre of Cracow In the period of apartments were sold. The biggest group representing 47,3% of the market are the apartments sold in the price range of PLN/m 2. The apartments in the price range of PLN/m 2 have also relatively big market share of 36,6 %. The sales of the most expensive apartments (above PLN/m 2 ) represents 2,9% of the market. chart 6 Sales characteristics of the apartments according price per 1m 2 in the period of from to ,9% above ,9% from to ,3% from to ,9% from to ,2% from to ,2% from to ,0% from to ,4% from to ,1% The apartments of the total price that range from PLN represent 27,6 % percent of the market and together with the apartments that range from PLN represent 52,5 % of the total market. The specific segment of the market are the apartments below PLN. These are mostly one room apartments of the average size 25,2 m 2. The average size of the apartments that price range PLN and PLN is 39,5 m 2 and 57,1 m 2 respectively. The top end apartments (above PLN) required a separate analysis. In the period of such apartments were sold. These are luxury apartments of the substantial size. The average size of this kind of apartments amounts 126 m 2 and the average price is per 1m 2. 5/6

The apartments in the price range of 5000 8000 PLN/m 2 have also relatively big market share of 36,6 %.

6 chart 7.Sales characteristics of the apartments according total purchase price in the period of from to ,7% from to ,8% from to ,3% less than ,8% from to ,9% from to ,0% from to ,6% from to ,0% from to ,9% 6/6

South East of Process Main Building / 1F. North East of Process Main Building / 1F. At 14:05 April 16, 2011. Sample not collected

South East of Process Main Building / 1F. North East of Process Main Building / 1F. At 14:05 April 16, 2011. Sample not collected At 14:05 April 16, 2011 At 13:55 April 16, 2011 At 14:20 April 16, 2011 ND ND 3.6E-01 ND ND 3.6E-01 1.3E-01 9.1E-02 5.0E-01 ND 3.7E-02 4.5E-01 ND ND 2.2E-02 ND 3.3E-02 4.5E-01 At 11:37 April 17, 2011 At