According to the data weighted with Polnord's shares, in the third quarter of 2018, the Company contracted 256 apartments, of which 133 apartments in September alone.
According to the data weighted with Polnord's shares, in the third quarter of 2018, the Company contracted 256 apartments, of which 133 apartments in September alone. The increase in sales at the end of the quarter stemmed from the introduction of a new bonus system for traders. 140 apartments will be included in the sale revenue of this period, as compared to 128 premises in the third quarter of 2017, and in net result - 141 apartments1) in relation to 201 units in the same period a year earlier. The most units wee handed over in the Tri-City (91 premises) and in Warsaw (41 apartments).
After nearly three years of uninterrupted growths on the Polish housing market, an explicit downturn is visible. Developers are recording sales declines. This trend is reflected in the results of premises sale reported by Polnord, which in the third quarter of 2018 decreased by 33% y/y. A similar tendency can be observed in the results, cumulatively. During the first 9 months of 2018, the sale weighted with Polnord’s shares amounted to 753 units, compared to 1,034 units in the record-breaking year for the Company, i.e. 2017 (drop by 27% y/y).
The risk of falling margins on planned projects resulted in shifts in their schedules and translated into a correction of the number of premises contracted.
- Increasing costs of implementation as well as prolonged time associated with obtaining administrative decisions led to shifts in the schedules of projects planned by Polnord Group. In July, the Company launched the first two investments this year - a total of 239 premises. The financial parameters of all projects are currently being reviewed and verified. Their launch will be mainly determined by an appropriate return on investment - commentsMarcin Mosz, acting President of the Management Board of Polnord SA.
In sales revenue for the period from 1 January to 30 September 2018, 629 apartments will be recognised (Polnord SA 100%), and in the financial result - 659 apartments (data weighted with shares of Polnord SA in JV companies) 1). This is an increase of 60% and 18%, respectively, y/y.
Polnord Group is the most active on the Warsaw and Tri-City markets, where in the second and third quarter of this year the highest increase in prices of apartments in Poland was recorded. According to the data weighted by Polnord's shares, in the Group's offer at the end of the third quarter of this year there were 890 apartments.
1) The data for the third quarter of 2018 does not include Semeko Aqusfera Sp. z o.o.
