Will the Polish government's DOM Portal with housing prices prove useful to buyers

The draft amendment to the Real Estate Development Act envisages the creation of a DOM Portal to increase the transparency of the market in terms of, among other things, the transaction prices of first- and second-hand flats. How do developers assess this idea? To what extent can the portal really help buyers?

Tomasz Kaleta, managing director of sales and marketing at Develia
Until we know the details of the DOM portal, including its design and, above all, the quality of the data and the way it is presented, it is difficult to make a clear opinion on it. According to its assumptions, the portal is supposed to present appropriately aggregated statistical information on residential real estate transaction prices, however, preventing the identification of details of specific transactions. This type of quarterly data for individual cities is already published by, among others, the National Bank of Poland.

Easier access to data will certainly be helpful not only for buyers, but also for developers. However, I do not think that the mere availability of this data will have an impact on the reduction of housing prices. Property prices are volatile and market-dependent, and the purchase process from the moment of booking a flat, during which the price is ‘frozen’, to the signing of the developer's contract can take several weeks to several months. Therefore, the data available on the portal may not be fully up-to-date.

In addition, the price of a particular flat within a single development depends on several factors, such as the layout of the rooms, the area, the floor, the orientation with respect to the world, or the size of the balcony or terrace. As a result, the price per square metre of a flat may differ by up to 6 thousand within the same development. Differences in finishing standard and sales policy between neighbouring projects should also be taken into account.

Mateusz Bromboszcz, vice-president of Atal
We are one of the few developers who openly inform about flat prices on the websites of their investments. This simplifies the purchasing process, allows customers to choose the unit best suited to their possibilities and to plan financing. A database facilitating price comparisons in a specific location may be useful, but insufficient without an analysis of the other characteristics of a given property. This is because individual investments differ in terms of standard, scale and many individual parameters, such as energy efficiency.

I am of the opinion that price transparency is a good market standard, but it is difficult to expect property prices to suddenly fall after the introduction of the planned instrument. Only bidders, especially those operating in the secondary market, will realise their initial expectations.

It will be easier to assess the effects, as well as the obligations towards developers, related to the implementation of the tool at a more advanced legislative stage, when the specific solutions and requirements are known.

Agata Zambrzycka, sales and marketing director at Aurec Home
The draft amendment to the Development Act assumes that the DOM portal will enable the comparison of housing offers with actual transaction prices, supporting informed purchasing decisions. It will also assist companies, including us developers, in planning investments and public institutions in analysing and adapting housing support tools. The portal is expected to generate statistics on the housing market, such as the number of transactions, property prices and the demographic profile of buyers.

However, regardless of whether the planned changes will actually improve the housing situation in Poland, they will certainly introduce additional, broad powers for public administration bodies, as well as for the Insurance Guarantee Fund, in terms of obtaining information on real estate market transactions.

Zuzanna Należyta, Commercial Director at Eco Classic
The DOM portal is a good solution and we support its creation, provided, of course, that ‘at the end of the day’ it does not turn out that reporting is so labour-intensive for developers that they have to create new jobs.

Andrzej Gutowski, Sales Director of Ronson Development
We have been operating on the Polish market for over 24 years. We support all initiatives that increase the transparency of the industry. We are committed to transparency, believing that access to reliable information strengthens clients' trust and raises standards in the entire sector.

We view positively the idea of creating a DOM Portal to publish transaction prices in the primary and secondary markets. This portal can help buyers make more informed decisions by providing them with a better insight into current market conditions.

Joanna Chojecka, sales and marketing director for Warsaw and Wrocław at Grupa Robryg
Increasing the availability of housing for Poles is very important and any solution that increases transparency in the residential property market is vital. How this idea is implemented will of course be key, but I am convinced that developers will be happy to engage with the government on this issue.

Marcin Michalec, CEO of Okam Capital
At this stage, we still know too little about the final shape of the DOM Portal project. In its outline form, it seems to be an interesting initiative that could further improve the transparency of the residential property market from the buyers' point of view. It would be a tool to support informed purchasing decisions, based on the prices of units on the primary and secondary markets gathered in one place and providing the possibility to compare them. At the same time, for developers and sellers of flats, this would involve reporting sales data to the portal.

Anita Makowska, Senior Business Analyst at Archicom
The draft amendment to the Development Act, which assumes the creation of the DOM Portal, is a step towards greater transparency of the real estate market, which may bring benefits, both for buyers and developers. Access to transaction prices in the primary and secondary markets will certainly facilitate more informed purchasing decisions. However, the proposed method of presenting prices based on a minimum of six transactions raises doubts, especially in smaller cities where the number of transactions may be limited, making it difficult to obtain representative data as a result.

In addition, the failure to take into account the standard of the property, especially in the secondary market, may lead to an incomplete picture of the value of the offers presented. The long period between the conclusion of a contract on the primary market and the delivery of the premises may also prove problematic, with the result that the transaction price may not always reflect current market realities.

The portal can be a useful tool, especially for more experienced market participants. However, without proper education of users, who may not be familiar with the subtle differences between the offer price, the transaction price and the market price, we run the risk of potential buyers misinterpreting the information.

Damian Tomasik, CEO of Alter Investment
The draft amendment to the Development Act, which assumes the creation of the DOM Portal, may bring significant changes to the real estate market, both at the level of transactions and transparency of the entire purchasing process.

From a land developer's perspective, such a portal indeed has the potential to increase access to information on actual transaction prices in the primary and secondary markets. Offering access to such data will have a positive impact on market transparency, which can help buyers make more informed decisions. Price transparency is also a factor that can reduce uncertainty among buyers, especially at the bid comparison and negotiation stage.
In terms of developers' responsibilities, the DOM Portal is likely to involve the need to report more data on sold properties. This may require adapting reporting processes and working with the administration to ensure compliance with the new regulations. For us as a land developer who deals with investment projects from the ground up, the new obligations may require additional work in the area of documentation and market monitoring which will have an impact on the cost of our business and therefore on housing prices, but in the long term they may contribute to stabilising the real estate sector.

Despite the potential administrative burdens, I believe that the implementation of the DOM Portal could prove beneficial, both for developers and buyers, as transparency and availability of data are key to building trust in the property market. In this way, the project can also help to increase competitiveness in the market, which will ultimately improve the quality of the products and services offered.

Source: dompress.pl
Photo: Cavallia, BPI