Andrey Kolochinskiy, the managing partner of VectorStroyFinance, told Novostroycity in an interview about how many developers make concessions with buyers, what finishing options exist on the market, and how you can save by purchasing a fully finished apartment.
— How do you assess the volume of proposals of apartments with finishing in the capital's housing market? What share do they account for of the total proposal?
Today, the real estate market in Moscow offers more than 16 thousand apartments, including ones with finishing. They account for about 30% of the total offer in the segment of new buildings. For comparison, a year earlier this figure was 27%. That means that the demand for apartments with finishing is growing. This is evidenced by other data - in quantitative terms, the offer is reduced from 17 thousand last year to 16 thousand this year, which is a 5% reduction. This suggests that apartments with finishing quickly "washed" out the market.
— What types of finish exist and which ones are more in demand?
I would conditionally divide the offer into three groups - apartments with finishing, which is called white box, apartments with standard finishing without the possibility of choosing from several options of design solutions and housing of high price segment with high-quality repairs and the ability to choose from a wide range of design projects. Most of the projects that are being implemented now offer a second option.
— And if you look at the segments, which of them is the largest share of apartments with finishing from the developer?
Most apartments with finishing are offered in new buildings of comfort class - about 59%. In the houses of business-class 27% of the apartments are sold with repair. The figure is not large, because the owners of expensive housing prefer to do the finish on their own, appreciating individuality and guided by their taste preferences in interior design. In the standard class, the share of ready-to-move housing reaches 14%. The explanation is simple - it's budget projects, choosing an apartment in which the client is guided only by the price. Any repair increases the cost, so the developers of affordable housing do not offer it.
— What is the average cost of finishing in different classes of housing?
The average cost of finishing in the comfort class in the Moscow market is 17-20 thousand rubles/sq. m. and the average cost of finishing in the business class starts from 30 thousand rubles / sq.m. at the same time if you do the repair yourself, you will have to buy similar materials at retail, the price will be more expensive.
— How many finishing options are usually offered by developers?
In half of the residential complexes, where the apartments are decorated, the style of repair is limited to only one option. The other projects offer two or more types of finishes, which in one form or another inherent features of classical or modern style.
In our residential complex "Kvartaly 21/19" we have developed 8 design projects. Globally, they can be divided into two styles. One assumes a more soothing color scheme, soft pastels, barely noticeable ornaments. The other is characterized by bright visual accents, clear geometric patterns that give dynamics to the space.
— Why did you decide to make a business class finish in your project?
The situation on the market is changing, apartments with finishing are becoming more popular and are in demand among buyers of housing in new buildings. Previously, it was a piece of goods, which offered a limited number of developers. Clients had to be content with a standard set of options, there were no high requirements to the quality of repair.
Today, in a highly competitive market, demands are changing. When deciding to buy an apartment, customers take into account all factors. High-quality finishing from the Builder becomes the same competitive advantage, as well as well repaired public places, high-quality improvement and even attractive appearance of the house.
— What is the proportion of apartments with and without finishing?
Only in the third quarter we have 5 monolithic buildings for 733 apartments, one building of them for 221 apartments with finishing is offered. We thought it was the right thing to do. People who bought an apartment in this house, are guaranteed to be free from construction noise and debris, which usually happens when repairs last in new buildings.
— What are the consumer characteristics of these houses?
All buildings in the third quarter meet the requirements of business class housing - they are built on monolithic technology, there are designed apartments with high ceilings, panoramic windows and additional bathrooms, exclusive design projects for entrance groups are developed, provided underground parking, which can be reached by elevator. Otis elevator equipment is installed in the houses. In the decoration of facades we use expensive materials – fiber cement panels of the German company Equiton. Among other expensive solutions can be called aluminum profiles MastTech that outperforms plastic double-glazed windows.
— It is clear about the finish, and how things are going with the furniture? Do you offer this option to your customers?
On the Moscow market apartments with furniture is much less than just apartments with finishing. Our buyer has not yet got used to this option. And we decided to leave room for the imagination of customers, but at the same time took on the heaviest part associated with the furnishings of the apartment. We equip the kitchen "turnkey" - install furniture from a leading manufacturer of the company "Maria". Each kitchen uses facades made of moisture-resistant material and a table top made of artificial stone. All appliances, including a dishwasher, are provided. The manufacturer of household appliances is a well-known brand "Electrolux".
— What bonuses does the buyer get when chooses an apartment with finishing from the developer?
I can note four main advantages. First, it is an opportunity to quickly move into a new apartment, with their own repair it will take much longer. Second, in our case, clients get peace, there are no irritants in the sound of the drill, debris in the stairwell, etc. Customers, who are limited in cash, can include the finish in the mortgage, they will not have to make expensive consumer credit. And finally, the most important bonus – the opportunity to save money. Finishing from the developer will be much cheaper.
— And if you go to the numbers, what are the savings?
In finishing we use building materials and components of only well-known brands - wallpaper of the Dutch brand BN International, interior doors from the famous domestic brand Profil Doors. For finishing floors in living areas we chose laminate flooring company Tarkett. In other large-format ceramic tile Italon is placed. Tiles of the same company is used in bathrooms. German GROHE mixers are installed.
We buy all materials directly from manufacturers at wholesale prices, the difference with the retail price is significant - 20-30% depending on the exchange rate. Therefore, we are able to offer a finish at a better price. The difference in the price of apartments with finishing and without is not great. For example, the studio of 30 square meters is worth 5.5 million rubles., the same apartment with finishing will cost 6 million rubles. Two bedroom apartment of 63 sq. m without finishing is worth 9.6 million RUB, and with finish – 10.6 million.