Rakennusliiket consider Helsinki's attempt to force housing prices down as “impossible” and an ineffective solution.
Construction companies are ambivalent about the attempt by the city of Helsinki to speed up housing construction with political decisions.
The city of Helsinki is trying to force construction giants to lower the prices of apartments in situations where construction has not started.
Regulation to reduce the price is “impossible”, says YIT's head of housing Antti Inkilä.
With the new tightening in Helsinki, the developer should be able to show that the prices of the apartments have been reduced to promote sales and that additional investments have been made in the marketing of the apartments.
In practice, therefore, Helsinki uses the plots it owns as a tool to intervene in prices.
It is justified to think about how long the plot reservation should continue if construction has not started, Inkilä admits. Inkilä's opinion is that it is equally understandable that the city wants to circulate lots if construction does not start.
“On the other hand, I find it impossible for the city to determine at what price a private operator can sell apartments under construction or completed. It doesn't fit the market economy,” says Inkilä.
Will it help this kind of “tightening of the screw”, also thinks the branch manager of Skanska's housing project development Juhani Aspara.
He also has enough understanding towards the city's goal. However, he does not believe that the method will work.
“I don't think that any of the grinders are intentionally passive or delaying the project's initiation. It's about the fact that there is no demand,” says Aspara.
With Grynder, Aspara here means construction companies that sell their self-financed apartments to consumers.
The proposed tightening could speed up the start of projects in some cases if construction does not seem to be starting.
Town's there are also positive aspects of the changes.
For example, the city of Helsinki is preparing to sell its plots instead of renting them out in order to get housing construction projects off the ground. This is viewed positively in construction waste.
Home buyers hope that there is a possibility to redeem the plot. The increases in land rent made by the city of Helsinki have created fear among apartment buyers, Inkilä states.
Does it work the city to speed up housing construction with changes?
Economist at Hypo-bank, which specializes in housing finance Juho middle takes a cautious approach to how big an impact the city's actions have.
A “wise man's stone” for the weak situation of housing construction is hardly forthcoming, Keskinen states.
“The general demand situation causes that [uusien asuntojen] the booking rates remain low”, says Keskinen.
When the occupancy rate of apartments is low, construction companies do not dare to start construction of freely financed projects.
The city's actions therefore do not address the root causes of the economic situation, such as demand and rising interest rates. Keskinen, however, likes the city's efforts to use the plots more efficiently.
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