Central Group tried cutting prices on 50 flats…

Robert McLean

#cee, #proptech, #development a #architecture

As an experiment, Central Group put 50 flats in its project at Harfa on the market for around CZK 100,000 per square meter, or roughly 25% below the usual price for the area. The result was less-than-surprising: they sold out in a matter of hours. “It was an experiment we wanted to try in order to give the market a sort of impulse,” says Central Group’s owner Dušan Kunovský. It was also a good way to bring attention to the residential developer’s new project, which has a total of 400 units. To achieve the ‘nice’ price, he cut costs on the flats’ fit outs and talked down the price on construction materials with the suppliers. “We’re evaluating the project and we’ll see if it’s a road we want to go down for future projects.”

Hospodářské noviny writes that the Brno developer Trikaya reduced prices on its Ponavia scheme by single digit amounts. Again, the result was quicker sales. “In several cases, they were bought by clients who had been thinking about buying a flat for a long time and our move to reduce prices was the impulse to make a final decision,” said its PR person Tashi Erml. Prices in Brno for new flats are 15-20% cheaper than in Prague.

Quarterly sales of Prague flats

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