Jump to content
House Price Crash Forum
Sign in to follow this  
undersupply

Persimmon Does Well

Recommended Posts

http://business.timesonline.co.uk/article/...1935066,00.html

Persimmon said it was on track to complete about 12,600 home sales during the year to the end of this month. It said the average selling price of its homes had risen by 5 per cent to £180,500, from £172,431 the previous year.

"Sales rates during the autumn months have been good," Persimmon said. "The number of current site outlets open is, as expected, slightly ahead of the same time last year with more than 120 new outlet openings planned for the first half of 2006.

Share this post


Link to post
Share on other sites
Persimmon reiterated its line that tough market conditions for new homes meant that it was having to use "selective incentives and
additional marketing support
" in the sales of new homes.

"Additional marketing support" translated means: cutting prices

And now for some Christmas cheer:

http://www.devilducky.com/media/26599

Share this post


Link to post
Share on other sites

WHY do they do well?

Presumably they have such a HUGE built-in margin, they can afford to discount heavily, and offer big incentives to offload their merchandise. The REAL LIE here is the stated price of these properties which amy be 10-205 above where they really expect to sell. Only a fool - and there are many fools about- would pay full offering prices.

BUYERS are only beginning now to wake up to this reality, now that teh SIPPS hysteria is fading

Good to hear your view on this.

I put a question regarding housebuilders to the forum a few days ago. I had a guesstimate of 40% asking prices above the cost of the build. I felt that they could afford to reduce and more reduce if the going gets tough. A profit is still a profit. Thats why I think stagnation isn't an option either.

Share this post


Link to post
Share on other sites

The developers have done very well out of all this.

That's obvious to all and something we are well aware of.

It's those buyers who now own these appartments who are discovering that they've bought into a myth and that there's no secondary market to speak of that will bail them out!

Share this post


Link to post
Share on other sites

WHY do they do well?

Presumably they have such a HUGE built-in margin, they can afford to discount heavily, and offer big incentives to offload their merchandise.

Well according to the sales lady I spoke to after finishing on the site for the day yes , but varying.

Different house types had different % discounts which I 'm assumimg took them down to their lowest acceptable profit on each type.

Think of a builder begining with R****W

Dames :)

Share this post


Link to post
Share on other sites

http://business.timesonline.co.uk/article/...1935066,00.html

Persimmon said it was on track to complete about 12,600 home sales during the year to the end of this month. It said the average selling price of its homes had risen by 5 per cent to £180,500, from £172,431 the previous year.

"Sales rates during the autumn months have been good," Persimmon said. "The number of current site outlets open is, as expected, slightly ahead of the same time last year with more than 120 new outlet openings planned for the first half of 2006.

Including incentives of £10,000 and £10,000 because you asked nicley.. you can get..

£20,000 of the exeter flats

Share this post


Link to post
Share on other sites

What about people who bought a year, two years ago and are now completing? Won't these sales be included in this years P&L account, as the bulk of the money is received on completion?

Therefore there would be a long lag on the P&L stats.. Just a thought!

Share this post


Link to post
Share on other sites

Including incentives of £10,000 and £10,000 because you asked nicley.. you can get..

£20,000 of the exeter flats

Anecdotally, where I live they are not doing very well at all even with discounting and trick schemes, they have built a large inner city development in the gay area of the toon which is not selling at all according to LR figures.Apartments of course :lol:

Share this post


Link to post
Share on other sites

I don't think that the home builders will really suffer all that much, they're too canny and will rid themselves of all their unsold stock before the general public become fully aware of a downturn.

And what do they do during the downturn?

Simple - they move on to commercial properties, sticking up office buildings, hotels and your new Tesco local that obliterated the old local shops.

Lots of competition for that though so what else?

Social housing for housing associations and government

I work for an engineering consultancy - Persimmon are a big client but my bosses, who have worked/lived through a crash/recession before, are not concerned as interests simply diversify in order to survive.

Edited by A late entrance..

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.