The company is careful about its sales targets as it does not want to drive sales at the expense of margins.
According to figures weighted by Polnord’s stakes in individual group companies, a total of 535 units will be booked in the financial results for 1H 2018 as opposed to 356 apartments delivered in the same period in 2017. Net unit sales totaled 497 vs. 652 apartments sold in 1H 2017. The company is not looking to maximize its sales volume at the expense of its margins. It is setting careful sales targets for 2018 due to rising prices of general contracting services.
In 2Q 2018, sales weighted by Polnord’s stakes totaled 199 units. A total of 213 apartments will be booked in the financial results for that period.
- We have communicated a number of times that because of the sometimes unreasonable prices of general contracting services, we will not be launching projects that could generate negative margins. We will be starting sales in projects, where we have signed an agreement with a general contractor, i.e. those where we are able to definitively estimate the cost of construction. We have the comfort of having a large investment landbank and our own construction company, Polnord Construction. Thus, we are able to delay our projects into the following year, as we have no intention of building expensive housing and then transfer unacceptable pricing on to our clients. When more rational rates for contracting services come back, our offer will be more competitive than the many real estate projects being rolled out right now, whose profitability can only be assured through significant price hikes, - says Dariusz Krawczyk, the CEO of Polnord SA.
in 2018, the group is planning to start selling over 1,250 apartments at 10 different projects. In early July, Polnord begun selling 113 units at a new Wilania project, located in Warsaw’s Wilanow district.