J. Chapko: reluctance of developers to develop the infrastructure reduces the interest of cottage townships
On the trends, prices, supply and demand for suburban real estate market in Kiev, as well as about the tricks resorted to what the developers in order to increase the profitability of houses on the market Building.ua said Yaroslav Chapko, director of professional services and investment, Knight Frank LLC Ukraine.
Building.ua: What do developers use to increase the profitability of suburban real estate?
Chapko J.: In recent years, due to cheaper projects the trend deterioration in the quality characteristics of the proposed cottage housing. Developers, who in the period of active growth of the market does not always comply initially claimed quality, are now trying to regain pre-crisis profitability by using lower quality materials or reducing the promised level of assembly.
Building.ua: Does an increase in the number of suburban real estate deals since the beginning of the year?
Chapko J.: At this point in the Kiev region are under construction in 54 cottage town. In 11 completed cottage towns continue the initial sale.
In III quarter. 2010 at the suburban real estate market went 8 new projects with a total volume offers 343 cottage. In all 4 new cottage villages Economy Class - Outdoor Village (DD Chervona Sloboda, DD "Kolonschyna village," DD "Plahtyanka"), "Yablunivskie gardens" - the proposal is formed from the land with utilities without a contract for construction. The elite suburban real estate increased by 22 homeownership at the expense of building a new cottage, Forest Eden. " Segment of the real estate business class has been augmented with three projects - "Roslavichi", "New Village. Honey Hills »and Rancho Bolivar. Cottage town "Roslavichi" entered the market with an already commissioned a second phase of the project, which corresponds to the main buyers' request - the acquisition of the fully expanded homeownership.
Building.ua: That is currently on suburban real estate market of Kyiv region demand only finished objects?
Chapko Ya: Basically yes. Despite the growing volume of supply, the interests of a few customers since the beginning of 2010 were still concentrated in a few cottage towns, which offer built cottages, the relevant statements to the class in quality and other technical parameters. And in the first half of 2010, and in III quarter. demand is concentrated in a segment of preparing proposals in whole or in part constructed and occupied towns.
Building.ua: use a demand-standing home? What is the situation in the secondary suburban real estate market in general?
Chapko J.: Secondary market currently offers high-quality detached houses with a good finish. Increased popularity among consumers enjoy home ownership in the price range up to $ 300 thousand reluctance of developers to develop the infrastructure of the claimed gradually reduces the interest of buyers to acquire houses in organized camps. Competitive become detached home ownership, are located in close proximity with the necessary infrastructure facilities with good road access and is surrounded by picturesque landscapes.
Building.ua: Should we expect to reduce the cost of houses?
Chapko H.: Most of the developers of objects of class "business" in September have reduced prices by 5-10%, and in some sites, the owners went to 30-45% discounts to customers, trying to implement a large-area houses. Most of all, prices sagged on the home area of 400 square meters. m and above. Prices for suburban real estate "economy class" during the June-September showed the largest drop in comparison with other segments of the suburban housing - 6.6% to June 2010 showed a decrease maximum prices for household economy class, and the minimum - a number of developers are exposed Ready to sell part ownership at lower cost. Price dumping developers both in business and economy class largely attributed to the lack of sufficient supply of houses built in the cottage, as well as large areas of houses.
Building.ua: In your opinion, what will the country real estate market in the medium-term and Long Term? Will increase if the number of transactions before the end of 2010?
Chapko J.: Primary market organized cottage villages in the medium term will feel strong competition from the secondary segment. Reducing the cost of infrastructure development towns has reduced their attractiveness to buyers who are actively considering cheapened detached houses. Until the end of 2010 we can expect a slight increase in the number of transactions - as a result of negotiations that began last summer and received discounts, however, the average bid prices in the segment does not undergo significant changes. Developers for its part has already lowered the maximum price to the end of the season, so the new shares and the program can be expected before early next year - with the opening of the spring selling season.