interim report Q1/2014
Uncertainty in the Finnish economy persists, despite the recovery experienced in the global economy. Wage earners' available income is again expected to decline slightly. Interest rates are expected to remain exceptionally low.
Demand for rental apartment is expected to remain good. No significant changes are expected in the supply of rental housing. The focus of new construction remains on privately financed rental apartments.
VVO's financial occupancy rate and resident turnover look to remain at the current level. As in the previous year, VVO's rent increases for 2014 are moderate in comparison with the business sector in general. The Group is expected to continue improving its result, particularly in the VVO Non-subsidised business.
The total number of commenced housing projects fell slightly, but in the Helsinki Metropolitan Area the number of new housing projects is expected to remain at the previous year’s level. Considering Finland as a whole, the number of commenced privately financed apartment and terraced buildings is likely to fall slightly below the 2013 level. There is fierce competition for the small number of available plots.
The number of new completed apartments on sale has continued to increase, curbing the number of projects initiated by construction companies. There continues to be an increase in the volume of renovation construction.