Sitting on good foundations
The positive results came in spite of the continuing slowdown in the Polish housing market, although this has affected the company's home sales. In Q2 2008, Dom Development sold 352 apartments and homes. In the same quarter of last year, at the peak of the residential boom, the figure stood at 536. The company now estimates its total 2008 sales will amount to 1,000-1,300 units.
"Our very good Q2 financial results are the effect of full exploitation of the period of greatest prosperity in the residential market," said Jarosław Szanajca, president of the board of Dom Development.
The company has announced that it will not reduce prices in spite of the lower demand, but will instead cut supply. Because of the slowdown, Dom Development has postponed the realization of 11 of its residential projects, but preparation - including design work and the securing of administrative permits - will be continued so that they can be swiftly introduced into the market when housing demand is on the rise again.
For the time being, Dom Development intends to boost future sales through the introduction of new offers. The company has already switched to turnkey standard in all its new developments. It is now also launching, in partnership with PKO BP, a new mortgage offer which allows for the first installments to be paid after the purchased home has been completed.
"I believe that these very attractive solutions will positively influence our sale results in the next quarters," said Szanajca.
