Are apartment prices inflated, and will they fall?

“Are apartment prices inflated?”
“Will prices fall soon?”

These are questions that buyers and sellers ask all the time.

The truth is that there is no single answer that applies to every property. Not all apartments are overpriced, but some certainly are.

That is why one apartment may remain listed for months, while another, seemingly similar property, sells very quickly.

The asking price is not the same as the market value

When people talk about high property prices, they usually look at online listings.

However, the price an owner is asking is not necessarily the price at which the apartment will be sold. Some listings reflect the property’s realistic value, while others reflect the owner’s expectations more than actual market conditions.

An apartment can be listed at any price, but the response from buyers will ultimately show whether that price is realistic.

When there are no enquiries, viewings or serious offers, the problem is often not that “nobody is buying anything at the moment”. It may simply mean that the relationship between the property’s price and quality is not attractive enough.

What matters is not how much the owner wants to receive, but how much buyers are prepared to pay at that moment.

Why do some apartments sell quickly?

Properties that are well positioned and realistically priced can still attract a large number of interested buyers.

The speed of a sale depends on factors such as:

• the location and micro-location;
• the condition of the apartment and the building;
• the layout and functionality of the space;
• the property’s legal status;
• the floor, lift, parking and terrace;
• the number of similar properties currently available;
• demand for that particular property type and location;
• the relationship between the price and what the buyer receives for it.

That is why it is not unusual for a high-quality apartment with a realistic price to sell quickly, even while other properties in the same street remain on the market for months.

Will apartment prices fall?

When we look at the market as a whole, there does not appear to be a reason to expect a sudden and equal fall in the prices of all properties.

However, that does not mean that every apartment can be sold at any price.

Average prices may remain relatively stable, while individual owners may still need to adjust their expectations. This is particularly true when a property is in poorer condition, has certain disadvantages or faces stronger competition within the same price range.

The market does not behave in the same way in every part of the city, nor does it respond equally to every type of property.

The price of a studio apartment in a sought-after location may behave very differently from the price of a large apartment that requires complete renovation.

The individual property matters more than the market as a whole

Sellers often wait for a “better time”, while buyers wait for a significant fall in prices.

However, a decision should not be based only on general headlines about the property market.

For a seller, it is more important to know:

• whether the property has been priced realistically;
• how many similar apartments are currently available;
• how much interest buyers are showing;
• how long the property has been listed;
• whether the presentation and sales strategy are producing results.

For a buyer, it is more important to assess whether the individual property justifies its price and how many high-quality alternatives are available.

Conclusion

Not all apartments are overpriced, but not every asking price is justified either.

We should not expect all properties to suddenly become significantly cheaper. It is far more important to analyse each apartment individually and determine whether its price reflects its location, condition and current demand.

Ultimately, what matters most is not what is happening to the market as a whole, but whether the price of the individual property is realistic.