City in the city, what is the shape of the secondary market in New Wilanów?
Over the last ten years, Miasteczko Wilanów has been undergoing intensive development. Every year, the estate expanded with new investments, the number of inhabitants increased and the infrastructure of the estate developed dynamically. Despite the very high activity on the real estate market, there was practically no turnover on the secondary market during all these years. It was not due to a lack of supply. Offers from the secondary market could not compete with the cheaper offer from developers. This has changed because there aren’t many new investments left. What is it like today and how much are real estate in Nowy Wilanów worth?
A FEW WORDS ABOUT THE HISTORY OF THE MIASTECZKO WILANÓW
Miasteczko Wilanów is the first example of a housing estate built in Poland, which was built on the basis of a project called a “master plan”. The concept of this city within the city was created by the architect and urban planner Guy C. Perry, and its main assumptions were self-sufficiency, compliance with the existing land development plans and consistency with the nearby palace complex in Wilanów. All architectural elements were created in accordance with the plan, which included, among others, aspects such as the permitted height of buildings or the preservation of historic and newly designed street axes.
THE IDEA OF A CITY IN A CITY
The creators of the estate wanted its inhabitants to be able to leave their car in the garage after a long day of work and rest from the hustle and bustle of the city in the green. The infrastructure for cycling and running paths is impressive.
Miasteczko Wilanów also provides everything that residents may need in their free time, without traveling to the center of Warsaw. Numerous cafes, restaurants, shops, fitness clubs, beauty salons and playgrounds for children are at your fingertips. In October 2018, there were 459 commercial premises of various types in Miasteczko, which proves the huge service potential of the estate.
Numerous institutions and non-governmental organizations also take care of the social and cultural life of Miasteczko Wilanów. Winter Olympics for children? The Royal Polish Dance Competition? Free Nordic walking classes for seniors? Or maybe a family picnic? The number of events and their diversity will not let anyone get bored. This is another reason why Varsovians willingly choose this district. Right outside the house, they can count on typical big-city entertainment.
THE BIGGEST CHALLENGES FACING NEW WILANÓW
Miasteczko Wilanów is struggling with several problems – shortage of places in schools and kindergartens, insufficient number of parking spaces or communication problems during rush hours. However, strategic actions are already underway to eliminate these problems.
In 2021, the investment in a tram line that will connect the district with the city center should be completed. At the moment, there is no rail transport in Wilanów, which is why there is great hope in the investment to relieve the excessive traffic of buses and cars, especially during the most popular hours. A new primary school, prepared to admit 750 students, is also being built in the town. The authorities plan to open it on September 1, 2020.
These actions are a clear signal that the district authorities think long-term and are responding to the surge of residents and the problems they face. This, in turn, is definitely a good forecast for the future.
WILANÓW AS THE MOST ATTRACTIVE PLACE IN WARSAW TO LIVE
According to most rankings and studies on the level of attractiveness of individual districts of Warsaw, Wilanów usually ranks first. It is undoubtedly one of the most attractive districts in the capital. Therefore, it would seem that selling an apartment in Miasteczko should be a very easy task. Is it really?
It turns out that it is not that simple. A short walk around the estate is enough to realize how many people want to sell their apartment. At every step, almost every building has advertising banners stating that the property is for sale. Some of them hang for a year or more. Although these banners disfigure the estate and most communities prohibit their hanging, the scale of their occurrence is a good illustration of the scale of the problem.
“People who decide to sell their apartment in Nowy Wilanów do not have an easy task. Over the years, the primary market practically made it impossible to sell flats on the secondary market. Today, the asking prices are so discrepant that it is difficult to properly price your apartment. As a result, sellers fall into a trap and the sales process becomes much more complicated. The key to success is a good start and well-thought-out promotion of the offer. ”
– comments Bartłomiej Annusewicz, Managing Director of Lions Estate and a resident of Miasteczko Wilanów.
HOW MUCH DO FLATS IN WILANÓW COST?
The answer to this question is not simple. Until now, most of the flats sold came from developers selling them relatively cheaply. Therefore, there was no chance to verify the prices on the secondary market and therefore it is still difficult to clearly determine how much these flats are really worth.
The situation is slowly changing, most of the currently under construction investments are already completely sold out, and there is not enough space for new ones. You can actually forget about the most prestigious premises on the primary market – on the top floors, with terraces.
People who bought them a few years ago are starting to sell their flats. Undoubtedly, the secondary market in Wilanów is just emerging, and apartment prices will shape in the near future. There are already many offers on the secondary market, but despite the high interest, most apartments are sold for many months, usually over a year. Why? First of all, because there is no information about how much the apartments in Nowy Wilanów should cost. Each party to the transaction is under great uncertainty: sellers are afraid to sell too cheaply, and buyers are afraid to overpay. Historical transaction data are unreliable, as 90% of transactions took place on the primary market, where until recently it was possible to buy apartments for 7,000 PLN per square meter, and today some sellers are testing the level of 15-17 thousand. PLN.
HOW TO APPROPRIATE VALUATION OF YOUR APARTMENT IN WILANÓW?
The fact that most owners do not really know how much their real estate is worth is evidenced by, for example, the discrepancy in the prices of flat offers in Miasteczko – from less than 10,000 PLN up to 15-17 thousand PLN per square meter. Acting in such uncertainty, sellers often list their property at an exorbitant price, there are also cases of offers posted below the real value. Both of these situations have a negative impact on the sales process, and starting with too high a price often ends with selling below the real value.
The key to proper valuation is proper market recognition, preparation and knowledge of the current customer expectations.
As Maria Góralczyk, an expert on Lions Estate and a resident of Nowy Wilanów says:
“Often times, owners are not aware of all the aspects that need to be taken into account when valuing their apartment. It is not only the quality of the finish, the floor or the view from the window. The town is already such a “city within a city”. It has its better and worse surroundings. In order to properly estimate the value of a flat, you need to know the town quite well and know what the current preferences of buyers are. “
We definitely need to know the prices of similar premises (area, floor, number of rooms), preferably located in our building, in our investment or in our part of the district. It is very important to establish how long these offers have been on the market (or how long they have sold), whether there have been price cuts in the meantime, what, how often and at what price level the submissions started. If we have access to transactional data, we must analyze it with great care and caution. Most of the available databases provide selective and imperfect data relating to real estate, which most often differ significantly from our apartment.
All these data should allow us to estimate the price range, which will be a good basis for preparing a sales strategy on which everything depends.
HOW TO SELL YOUR APARTMENT IN THE MOST OPTIMUM WAY?
The sale of your flat in Miasteczko can be carried out efficiently and successfully. Below are some common mistakes and tips on how to avoid them:
Looking for an amateur – wishful thinking
At the beginning, forget about the popular strategy of listing an apartment at a price much higher than the market price, such as: “let’s try, and maybe someone will hit” or with the hope that there will be a client who will fall in love with the apartment so much that he will not look at the money.
What can you lose by offering your apartment well above its value? Everything, in fact. Do not set the first price of an apartment with the attitude that if it does not sell, you will drop the price.
“This is the biggest mistake! Our many years of experience show that people approach the purchase of a flat very rationally. Even those who – it would seem – do not have to worry about finances. The scenario where the client will fall in love with your apartment and will be able to pay all the money for it is purely wishful thinking. Such situations do not happen. People who have money know how to count it well. Let us not have unnecessary illusions. “
– advises Marysia Góralczyk.
The bright new effect – something we often forget
Remember that potential clients follow the sale offers on an ongoing basis and are perfectly aware of the prices of real estate offered. If they see that the price of your offer is definitely higher than the market average, they will definitely not call you, even if they are delighted with the apartment. And over time, each offer loses its greatest asset: the novelty effect. Even if you lower the price of your property after some time – and you will certainly lower it many times – the client who was initially interested in it may not react at all. Why? Because the offer and announcement will no longer be something new or attractive for him. Additionally, lowering the price will raise suspicion. There will be thoughts that there is probably “something is wrong with the offer” since it cannot sell for so long. People looking for a flat relatively regularly browse advertisement portals and websites of selected agencies. If they see your offer many times, each time with a new, lower price – they will not take you seriously or will wait for further discounts.
This is one of the basic problems that extends the time of sale and, as a result, reduces the value of the property. An inadequate apartment valuation at the beginning means you miss the best deals. There are many offers, so buyers have no problem finding a different, more rational offer. As a result, you will sell your apartment after many difficult, frustrating months, for an amount less than you could receive, sometimes even less than it is actually worth.
Good start – good final
As experts from Lions Estate agree, the most profitable and the fastest sellers are offers that have an appropriate, rational price at the very beginning. We take advantage of the novelty effect, arouse buyers’ interest in an offer that they have not seen yet and by properly conducting negotiations, we are able to sell with cosmetic products or without any reduction in the reserve price at all. If you evaluate your flat wisely, many potential customers will see it and there is a good chance that if the talks are conducted properly, several buyers will be interested in it – who, as a result, will be able to pay as much as you expected. Tempting, isn’t it?
Selling an apartment in Miasteczko can be a smooth and successful process. The basic condition is the prior recognition of the market and appropriate preparation, which will lead us to achieve the highest possible selling price.
“Proper pricing and a good start is the necessary minimum. This way we will avoid basic mistakes. Then you need to skillfully position the offer and reach the right customers. This can be achieved through marketing efforts, but contact networks work best in the premium market. Good management of submissions, warming up buyers’ expectations before the presentation and not making mistakes during the presentation or subsequent negotiations will help to arouse interest.
– reports Maria Góralczyk.
We will tell you more about what to do and what you must not do when offering real estate for sale in the following articles.