How are new apartments selling this year

Did the number of buyers interested in purchasing apartments increase in March due to the launch of the preferential no-contribution Family Housing Credit program? Is the new proposal to support borrowers having a real impact on sales of new apartments? Do buyers plan to take advantage of government solutions?

Tomasz Kaleta, director of the Sales Department at Develia S.A.:
In the first months of 2023, the upward trend that we first observed in the fourth quarter of last year continues. We record the number of contacts at levels comparable to the period before the pandemic and the conflict in Ukraine, which translates into a higher number of transactions. Decision-making is still not very high, which has to do with the situation of those customers who have lost their creditworthiness or it has been heavily reduced. The Family Housing Loan, the second iteration of the government's no-contribution loans and the successor to the No Contribution Housing, does not solve this problem, although the limits on the price of apartments that can be bought under this solution have been raised. In order to apply for a "RKM" loan, you need relatively high earnings and creditworthiness. In order for the Family Housing Credit to start functioning as its authors intended, it would need to be combined with the 2% Safe Credit program. The Ministry of Development and Technology allows for this possibility. It is not clear, however, whether in such a case the loan applicant would have to meet the conditions for the two programs, which differ somewhat. Unlike the 2% Safe Loan, the Family Housing Credit has price restrictions on the square meter of the property being purchased. "RKM" also allows the borrower to be a past owner of a house or apartment, in the case of "BK 2 percent" this is a disqualifying circumstance.

Zuzanna Należyta, commercial director at Eco Classic:
In January and February, an upturn was evident, but now, due to a number of pre-election ideas about housing policy and, above all, about credit for housing purchases, a sizable number of customers are holding back their purchase decisions. The current program has marginal interest among customers.

Piotr Ludwinski, Sales and Customer Service Director at Archicom:
The launch of the government's First Home program, one of the objectives of which is to facilitate access to a mortgage on preferential terms, is scheduled for the beginning of the third quarter, and it will certainly affect demand in the real estate market. As Archicom, we have noted the first inquiries from potential buyers about the possibility of taking advantage of such support even before the bill was signed, solely on the basis of government announcements.

Responding to the expectations of our customers, we have prepared a new promotion that allows the purchase of real estate with an own contribution of 10%, assuming the payment of the remaining funds after obtaining financing. If the buyer fails to obtain it or the program is not launched on time, we will refund the paid-in capital. The program does not impose significant restrictions on the product side, so it can be expected to lead to a further recovery of the market, although restrictions in the form of buyer creditworthiness, among other things, should also be borne in mind. Based on this, we conclude that the market will gradually recover, while keeping in mind that long-term investors have not disappeared from the market, and limited housing supply may also be an important criterion in the coming months.

Angelika Kliś, Atal board member:
The effect of the government's facilitation of access to financing, or advanced work on their behalf, is an increase in interest in apartments in our investments as well. This is especially true of the program securing loans above 2 percent, which is set to take effect in early July. Decisions are also fostered by our own Czas na mieszkanie program, in which customers gain a price guarantee, time until September to arrange financing, and the possibility to withdraw from the developer's contract if a loan is not obtained.
On the other hand, when it comes to the BGK guarantee and exemption from the requirement to make an own contribution, I have doubts about the practicality of such a solution. Lack of funds for the own contribution means that such a customer will have very limited creditworthiness, and in his case this facilitation will unfortunately not help much.

Małgorzata Ostrowska, director of the Marketing and Sales Division at J.W. Construction Holding S.A.:
Since the beginning of the year, our investments have been dominated by cash customers, with smaller units selling the fastest. And while these customers are still definitely in the majority, we expect that with the government's 2% Safe Credit loan adopted, people who were waiting for better times because they lost their creditworthiness will return to our investments. We are already seeing a significant recovery from our sales results in February. February was the first month in a long time in which there were customers buying apartments for their own use. We saw an even greater recovery in March. We launched a special offer aimed at potential beneficiaries, so they can choose an apartment and sign a contract with us now. We have at least a few projects tailor-made for customers who are eligible for the government program. The proposed 2% Safe Credit solution undoubtedly supports the demand side of the real estate market, but how many people will realistically regain the chance to buy their own apartment we will see in a few months.

Joanna Chojecka, sales and marketing director for Warsaw and Wroclaw at Robyg Group:
The situation in the residential real estate market is unique - on the one hand, we have a very high demand from Ukrainian citizens, but also many customers from Poland who want to buy an apartment and are waiting for financing opportunities. On the other hand, supply is reduced by still too slow administrative procedures. However, it can be seen that the situation in the mortgage market has been improving since the beginning of 2023, as confirmed by data from the Credit Information Bureau. More and more loan applications are being recorded compared to December 2022, and it can be assumed that this trend will continue to be positive in the coming months. In most banks, customers' creditworthiness has increased, allowing them to make more flexible decisions about buying a home.

Cezary Grabowski, sales and marketing director of Bouygues Immobilier Polska:
In the first quarter of this year, the apartments in Bouygues Immobilier Polska's developments sold very quickly, and the result exceeded our sales targets. Since the beginning of the year, we have introduced two estates in Warsaw - Nova Talarowa and Osiedle Lumea 2 - and we can already say that at the moment we have signed as many as 70 contracts. These numbers only confirm that we are building estates that respond to the real expectations and needs of the market.

In March, we did not observe an increase in the number of customers interested in buying apartments in connection with the Family Housing Credit program. However, we have noticed that there are already people who, thanks to the new housing law, are starting to be proactive and are coming to our sales offices asking for an offer. Therefore, we anticipate that this program could be a market stimulator, giving customers interested in buying their first apartment a real opportunity to do so. This will probably result in an increase in demand in the segment of popular apartments, i.e. the kind of investments we are developing - with compact, but at the same time functional square meters, with attention to common areas, landscaping next to the investments, ecological solutions, as well as in well-connected parts of cities.

Boaz Haim, president of Ronson Development:
The beginning of 2023 in terms of sales was very good. We are seeing increased customer activity and the first signs indicating the expected market rebound. We are likely to finish the first quarter of 2023 better than the fourth quarter of 2022. This is certainly due to the announcements of the government's new 2% Safe Credit program, but also the relaxation of the FSA's guidelines for calculating creditworthiness. We expect the second quarter of 2023 to be very good. In our case, it will be a time of accumulating receipts in several investments, but also of replenishing supply. We are starting construction of Ursus Central II e, a stage in which 280 apartments will be built, and the seventh stage of the City of Mine project, in which 243 apartments will be built.

Marek Pawlukiewicz, communications manager at Aria Development:
We are currently seeing an upturn in the housing market, but in our opinion it is not related to the government incentives under the Family Housing Loan. Some customers are pinning their hopes on the First Apartment program, which will come into effect in the middle of this year. As a result, they are holding off on a purchase decision until the new regulations take effect.

Sebastian Barandziak, CEO of Dekpol Deweloper:
The decision-making process for buying an apartment currently takes between 1 and 2 months, counting from the moment a potential buyer expresses interest in an apartment to the conclusion of a contract.

In March, we did not see an increase in the number of customers interested in buying an apartment due to the launch of the Family Housing Credit program. At present, we do not see the impact of the new law on sales, but in the future it may contribute to an increase in the group of customers interested in buying, due to an increase in their purchasing capacity.

Source: dompress.pl
Photo: Ursus Centralny, Ronson Development