Big construction companies struggle to sell new flats
https://yle.fi/a/74-20214151
Posted by Shariful125
Big construction companies struggle to sell new flats
https://yle.fi/a/74-20214151
Posted by Shariful125
12 Comments
Everything sells if it’s priced correctly. Where I live you can buy a new apartment, or you can buy an older one with all renovations done from the same area about half the price. In this economy why would anyone choose the new one.
I’ll tell you a little secret why….come closer….real close….*whispers* “unemployment rate is high, no one has job security or lost their job”
This is just personal anecdote, but I had to suffer year and half of noises while they constructed their 3 buildings of apartments right in front of my window. That was 3 years ago and 1/3 of them look unocuppied. I looked up what they are building and selling/renting and they really rammed as many units into those buildings as they could, all but few special are smaller than my apartment or same size with more rooms. For more obviously. There is some advantage of newer apartments but imo size (or room count with reasonable size) wins over any negatives of older units.
I mean if the apartments were even grand and looked nice they could justify the costs but 300k for a shoebox in the side of the city is absurd
New apartments are small with no kitchen and storage place so no thanks
Theyll sit empty while they refuse to lower prices(because -20% less profit! Cant have that), then they’ll get some contract with the government who’ll overpay significantly, and the cycle continues.
The problem is that the day the construction company decides to lower their prices, they also have to write off the value difference of the apartments they have – which shows as losses. And with their current revenue they can’t take those losses, so they try to kick the can as long as possible, offering all kinds or extras instead of lowering the values in their books.
I mean, how much should a family earn to afford monthly loan payments for one of those 680k EUR 82.5m2 family-sized apartment in this kerrostalo? My guess is over 10k/month combined, which is pretty rare for both spouses, especially in the current job market and economy. Main bedroom is made in such a way that you can’t even put TV on the wall. Close by is only a small (and probably overpriced) K-Market. 35 min on public transport to city center. One advantage is oma tontti, but I wouldn’t pay for that more than 500k.
Well. They cram ever more buildings on a lot and the flats get ever smaller. A 3 room apartment in 62m2? Like what are they thinking?! Terrible. No wonder they don’t sell anymore.
Let’s see. They’re small. Crammed. No storage space. You can hear when your neighbours cough and they are vastly overpriced. These could be the reason but the grynders gonna grynd and make absolute pissholes of tiny apartments with ridiculous pricing.
the current new places they build are horrible, bad layouts, weird design, low quality…I wonder why they sell badly
Looking a the floor plans of almost any new apartment building, it is abundantly clear that they were built to be sold, not to lived in. Not designed as a home, but as an instrument of profit for the builder.