Few properties were sold at Poland's first live property auction, despite low prices
Poland's highly anticipated first live real estate auction turned out to be something of a disappointment, with 19 of 27 properties left unsold. The event, organized by Colliers International together with auction houses Rick Levin & Associates and DESA Unicum, had been described as an attempt to fill a gap in the market.
Bidders were mostly interested in units from the Wiślane Ogrody and Dobrolin projects, developed by Star Investments and Dantex, respectively. Four apartments were sold from the former, and two apartments along with a commercial unit from the latter.
Although few properties sold, the auction was a success by other measures. It drew over 250 interested parties and all of properties moved at prices considerably below their market values. For instance, a unit in Wiślane Ogrody whose market price was over zł.7,000 per sqm sold instead for zł.4,900 per sqm.
"Taking into consideration the fact that it was a pioneering undertaking in the Polish property market, we are satisfied with the results of today's auction. It turned out that despite some opinions to the contrary, Poles are not afraid of the new and gladly participated in our project," Paweł Hardej, director of the property auction department at Colliers International, said in a statement.
He added that the company would organize more auctions, including some in other large cities, as early as Q1 2010. "We hope that the result of the first auction has convinced vendors [of the merits of] this innovative form of sale," Mr Hardej stated.
Not all property market experts, however, have shared this enthusiasm. According to analysts from consultancy CEE Property Group, auctions will not become a major channel for residential project sales due to limited demand and prices unfavorable to the developer. "This specific form of sale is, however, an interesting supplement to marketing campaigns," the company said in a statement.
From Warsaw Business Journal by Adam Zdrodowski