In the third quarter of 2023, the Dom Development Group sold a total of 1,081 net housing units (compared to 703 in the third quarter of 2022), including 402 units in Warsaw, 374 in Tricity, 189 in Wrocław, and 116 in Krakow.
The highest quarterly sales from the Group were recorded in projects such as the Wilno Estate (101 units) and Urbino (55) in Warsaw, Doki (74 units) and Beaufort Residence (55) in Tricity, Górka Narodowa (63 units) in Krakow, and the Międzyleska Estate (45 units) in Wrocław.
Cumulatively, over the course of 9 months into 2023, the Group sold 2,926 net housing units, a 29% increase compared to the same period in 2022, when the net sales reached 2,262 units.
The Group handed over 535 housing units to buyers in the third quarter of 2023, including 136 in Warsaw, 272 in Tricity, 119 in Wrocław, and 8 in Krakow.
The financial results for the third quarter of 2023 were mainly influenced by handovers in the Beaufort Estate (167 units) in Tricity, Dom na Służewcu (103 units) in Warsaw, and the Komedy Estate (79 units) in Wrocław.
In total, over the course of 9 months in 2023, the Group handed over 2,533 housing units, compared to 2,598 units a year earlier.
“The economic climate in the housing market in the third quarter of 2023 was favorable for achieving very good sales results by developers with a suitable offer. The demand increase observed for several quarters, which is largely due to the easing of credit assessment conditions by the Financial Supervision Authority and consistently increasing wages, was further reinforced in the third quarter of this year by the introduction of the ‘Safe Loan 2%’ program. Another demand-stimulating factor was the anticipation of the first interest rate cuts. These were materialized in September 2023, even deeper than expected, in the form of a Monetary Policy Council decision to cut interest rates by 0.75 percentage points.” comments Jarosław Szanajca, President of the Management Board of Dom Development.
“The strong increase in demand combined with lagging supply is contributing to a further significant increase in apartment prices.
The Dom Development Group is benefitting from the revival in the housing market, achieving very satisfactory sales results (an increase of 29% year on year in the third quarter of 2023).”
“In the Dom Development Group in the third quarter of this year, the share of transactions financed by mortgage loans accounted for 49% of sales, while cash transactions accounted for 51% of sales, which confirms the still significant level of investment purchases.”
“Considering the high level of sales during the summer season, the Dom Development Group systematically puts new projects on the market, while replenishing the land bank.
The third quarter of 2023 was a period of further stabilization of prices in the construction materials market. However, the persistently high inflation puts pressure on wage increases, which may in turn increase construction costs. In this situation, an important advantage of the Dom Development Group is its own general contracting, thanks to which we have developed long-term relations with our subcontractors and limit risks associated with the execution of our constructions.”
“The Management Board of Dom Development expects the continuation of observed trends in the fourth quarter. The market situation in the coming months will be largely determined by the level and pace of adjustment of developers’ offers to the growing demand and current macroeconomic conditions. Dom Development Group has been doing very well in this situation so far – we have significantly strengthened our leading market position, while maintaining a strong balance sheet and liquidity” – indicates Leszek Stankiewicz, Vice President of the Management Board, CFO of Dom Development.
