Profil:
Dom Development SADom Development sees supply exceeding current sales as threat to market
Listed real estate developer Dom Development believes that a supply of apartments exceeding current sales is currently a threat to the market, company representatives told a video conference following the release of Dom's financial report. Greater interest in loans is a positive factor, according to CEO Mikolaj Konopka. The group wants to maintain its offer at 3,500-4,000 units under construction.
"New housing supply exceeds current sales, which we see as a major threat to the market and significant pressure on prices (...). We are seeing longer sales times (...). There is pressure to increase supply and pressure on prices, which we believe is one of the negative factors affecting our business and the entire development market. However, this translates into stabilization of apartment prices on the primary market," CEO Konopka told the video conference.
"The threat is therefore the growing supply, and the positive factor is the increased interest in loans resulting from the decline in WIBOR," he added.
Dom Development's offer includes 3,778 units, as reported.
"We would like to aim for 3,500-4,000 units under construction. We want to avoid overproduction and the problem of supply that rotates for too long," said the CEO.
doa/ nl/ ao/