Though this might give cheer to apartment owners in what I suspect is an already oversupplied Wroclaw market.Even with this good news for sellers, I cannot see me off loading my apartment anytime soon. Iam going to Wroclaw this week (to seek/meet lease agents) and hope to gauge the situatuion first hand.





http: / /www .bloomberg .com /apps /news?pid=20601095 &sid=aI6SwrGYxcLI

The construction of Sky Tower was suspended for six months due to the low demand for apartments because of tightening mortgage lending criteria.

It is worth mentioning that this development is a luxury, high-end project aimed at a relatively small group of wealthier buyers. And while the developer didn’t have problems with selling the most expensive apartments in Sky Tower, the units with lower prices (but still relatively high to the market’s average) couldn’t find buyers. Prices for the least expensive apartments were even reduced to PLN11,000/ sqm (from PLN13,500/ sqm), but still didn't sell.

It is a proof that there’s clear price ceiling for the wider group of potential buyers in Wroclaw, well below the price level in Sky Tower.

It is true that in Wroclaw we currently have a situation where supply exceeds demand. On the other hand, as a result, we also have a rental market that is strengthening.

Overall, if you think long-term, Wroclaw is a good investment location because of its strong fundamentals: strong inward migration, rising employment and very strong job creation combined with a long-term shortage of housing.

cheers,
Anna