Since the summer the land prices go upward

Since the summer, the land prices go upward. "We remain similarly still priced lower than in 2008 land charges", observes Guy Nafilyan, CEO of Kaufman & Broad. "According to the locations, prices are 5 to 15 cheaper than in 2008," confirms Christian Rolloy, leader and founder of the Promogim group. However, developers are more and more to denounce a pressure on land values and to regret the return of the competition in the responses to calls for tender launched by local communities. "End of 2008, we were few in number to respond to these projects." "Since the spring, we are sometimes a dozen to covet the same folder", notes one operator. "To take the case, some practicing new one-upmanship", recognizes Jean-Luc Poitevin, delegate CEO of communities and housing in Nexity pole.

Stocks

Why this change Since a few months, these players are selling at high pace and their supply is being depleted. Stocks would be even to the lowest. "End of June 2009, we were at six months of stocks against twenty months late 2008", said Raymond Leroy-Liberge, CEO of the group the Provinces. They must find new locations to launch sites without delay.

According to published figures late August by the Ministry of ecology, energy, sustainable development and the sea, the sales of new homes are in the second quarter of 2009 29.6 higher than those recorded in the same period in 2008. At the same time, the volume of sale warnings moves back to 28.2. End of June 2009, the total stock of new homes offered for sale contracted 22.9 from June 2008. And the number of building permits decreased by 29.6 between May and July 2009, compared to the same period a year earlier. The flow of sales is faster than the renewal of the offer.

The financial storm occurred a year and, in its wake, the crisis of investor confidence led developers to freeze their projects and their negotiations for the purchase of land at prices become too high. To be shed operations down, some have not hesitated to assign block to the NIS, this subsidiary of the Caisse des Dépôts for resale to social landlords. But this difficult pass was of short duration. The adoption, in early 2009, device rental investment support Scellier re-launched the machine and this tax measure, proposed up to end of December 2012, whipped sales. Some proponents say achieve up to 70 to 75 of their turnover through the acquisitions of investors, which deflating stocks. This movement has, moreover, been maintained by stimulus measures: doubling of the loan zero (PTZ) for acquisitions in the nine and extension to Pass-land collective housing, dissociating purchase walls and the ground.

Developers are therefore in "raw" hunting to reconstruct their land reserves and to respond to the request, knowing that there is a minimum gap of twelve to twenty-four months between the purchase of the land and the marketing of the program implementation. It will have to wait until the new housing supply reconstitutes itself.

Developers must now be purchasers of rights of way on the basis of acceptable housing sales price assumptions in two or three years.

While the nine sector knew during these last ten years an exponential growth of values, manufacturers inject mechanically programs output prices and received the crossing of comfortable margins. Market still fragile in this 2009 re-entry, the exercise becomes more difficult.

This is the land acquisitions strategies differ. Some operators hope to take advantage quickly of this rally. They are optimistic about a rebound in the prices of the nine and go auction. Others play the caution. "We expect stability of selling medium term values," says Christian Rolloy. "The land charge shall, in General, not exceed 10-15 of the price of near commercialization of 3,000 euros", said Raymond Leroy-Liberge. "We are wary of real projects where cities needed housing, superstores." "Because of their prices, they struggle to sell in the current context", says René Metz, President of BNP Paribas real estate residential Promotion. As Guy Nafilyan, he indicated that his group "prefers the locations in the city or close periphery". "We let the second and third crowns." "We do not play the escalation of prices." "It is for this reason that we have not been retained for the ZAC de Rungis train station in Paris," argued Jean-Luc Poitevin, who expects an increase in the price of the land by the end of the year. His eyes, the value of the land remains more that never "a variable of adjustment in the calculation of the price of a dwelling" in the same way as construction costs.

10-15 of the cost

Why this change Since a few months, these players are selling at high pace and their supply is being depleted. Stocks would be even to the lowest. "End of June 2009, we were at six months of stocks against twenty months late 2008", said Raymond Leroy-Liberge, CEO of the group the Provinces. They must find new locations to launch sites without delay.

According to published figures late August by the Ministry of ecology, energy, sustainable development and the sea, the sales of new homes are in the second quarter of 2009 29.6 higher than those recorded in the same period in 2008. At the same time, the volume of sale warnings moves back to 28.2. End of June 2009, the total stock of new homes offered for sale contracted 22.9 from June 2008. And the number of building permits decreased by 29.6 between May and July 2009, compared to the same period a year earlier. The flow of sales is faster than the renewal of the offer.

The financial storm occurred a year and, in its wake, the crisis of investor confidence led developers to freeze their projects and their negotiations for the purchase of land at prices become too high. To be shed operations down, some have not hesitated to assign block to the NIS, this subsidiary of the Caisse des Dépôts for resale to social landlords. But this difficult pass was of short duration. The adoption, in early 2009, device rental investment support Scellier re-launched the machine and this tax measure, proposed up to end of December 2012, whipped sales. Some proponents say achieve up to 70 to 75 of their turnover through the acquisitions of investors, which deflating stocks. This movement has, moreover, been maintained by stimulus measures: doubling of the loan zero (PTZ) for acquisitions in the nine and extension to Pass-land collective housing, dissociating purchase walls and the ground.

Developers are therefore in "raw" hunting to reconstruct their land reserves and to respond to the request, knowing that there is a minimum gap of twelve to twenty-four months between the purchase of the land and the marketing of the program implementation. It will have to wait until the new housing supply reconstitutes itself.

Developers must now be purchasers of rights of way on the basis of acceptable housing sales price assumptions in two or three years.

While the nine sector knew during these last ten years an exponential growth of values, manufacturers inject mechanically programs output prices and received the crossing of comfortable margins. Market still fragile in this 2009 re-entry, the exercise becomes more difficult.

This is the land acquisitions strategies differ. Some operators hope to take advantage quickly of this rally. They are optimistic about a rebound in the prices of the nine and go auction. Others play the caution. "We expect stability of selling medium term values," says Christian Rolloy. "The land charge shall, in General, not exceed 10-15 of the price of near commercialization of 3,000 euros", said Raymond Leroy-Liberge. "We are wary of real projects where cities needed housing, superstores." "Because of their prices, they struggle to sell in the current context", says René Metz, President of BNP Paribas real estate residential Promotion. As Guy Nafilyan, he indicated that his group "prefers the locations in the city or close periphery". "We let the second and third crowns." "We do not play the escalation of prices." "It is for this reason that we have not been retained for the ZAC de Rungis train station in Paris," argued Jean-Luc Poitevin, who expects an increase in the price of the land by the end of the year. His eyes, the value of the land remains more that never "a variable of adjustment in the calculation of the price of a dwelling" in the same way as construction costs.