Slowdown in growth in housing loan market weaker than expected
22:12
The most recent market data indicate the visible effect of the slower growth dynamics on the housing loan market in Poland in the second quarter of 2020. This is mainly due to a period of global pandemic and a lockdown in the economy. However, it seems to be shallower than initially expected, which is good news in the context of recovery in the mortgage market in the coming months.
"There is a visible decrease in the dynamics of the increase in the value of the total amount of housing loans. While the change in the first quarter of 2020 compared to the fourth quarter of 2019 was +3.77 percent, in the second quarter compared to the first quarter of 2020 it reached the value of only +0.66 percent. This is mainly due to the smaller number of contracts concluded by banks, the number of which in the second quarter of 2020 reached 45,179 and was lower than in the previous period by as much as 19.97 percent,” Kinga Burcan, credit expert , Managing Partner at Trinity Finance, pointed out.
The global value of Poles' debt under housing loans amounted to PLN 462.5 billion, which means an increase in the second quarter by PLN 13.4 billion, according to the AMRON-SARFiN report, ’Nationwide report on housing loans and real estate transaction prices’ for the second quarter of 2020. Considering the period of economic closure caused by the Covid-19 pandemic, these PLN 13.4 billion of new housing loans should be noted as a success anyway.
“It is worth noting that the average value of a housing loan granted in this period increased by 1.27 percent, reaching the amount of PLN 297,567. Additionally – what is interesting – the average transaction price on the real estate market for 1 sqm of flats in Warsaw increased by 1.12 percent, which means a weaker dynamics of real estate price growth (in the previous period, Q1 2020 / Q4 2019, this value was 2.29 percent). The forecasts about an inevitable drop in prices on the real estate market have not been confirmed so far. It can only be observed in the real estate rental market. The rental price for an apartment in Warsaw fell by a whole 1 percent compared to the previous period,” Kinga Burcan added.
(WBJ)
