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Primary residential market in Pushkin and Pavlovsk was always characterized by the low supply volume. These flats are in demand among a certain category of purchasers, who are ready to pay for the proximity to the palace complexes and life in a small pretty town.
A lot of housing was never built in Pushkin and Pavlovsk. From the developers it was required to take into account the specificity of towns-parks in total and surrounding development in particular. The result of this politics is that the majority of newly built residential blocks are stylized in historical buildings, overall altitude and landscaping standards are in line with the requirements.
‘According to this, developers are always careful about new projects in these towns. Only the most appropriate projects were realized,’ Maxim Ignatovich Head of the Sales and Acquisition Department of Surveyor International Group says.
There were not so many projects of that kind as land plots were expensive, construction of houses with all limitations was even more expensive, and many projects were economically feasible. That’s why the majority of residential complexes constructed here belong to small local development companies.
Low from the ground
‘As in Pushkin and Pavlovsk it is possible to construct only low-rise or middle-rise buildings, basically small separate residential blocks up to five storeys in height are being constructed here,’ Tamara Popova Head of the Research Department of Knight Frank says, ‘In 2014-2015 in Pushkin and Pavlovsk more than 1.7 thousand flats with the total residential area around 120.5 thousand sq. m were constructed here’.
Flats in 10 residential complexes and 2 phases of existing complexes are offered for sale now in Pushkin and Pavlovsk. Four of them belong to mass market class and two belong to business class and are located in Pushkin, the remaining four projects of economy class are situated in Pavlovsk. Ready and already inhabited houses of comfort class predominate over the rest of the housing. This is explained by the proximity to the social and retail infrastructure, transport accessibility and established prestigious reputation of the area. According to “Peterburgskaya Nedvizhimost”, the current total volume of the market in Pushkin and Pavlovsk amounts to 121.9 thousand sq. m. 95.2% of the total volume belong to mass market, the remaining 4.8% - to business class. The market volume in Pushkin equals 115.2 thousand sq. m, while in Pavlovsk – 6.7 thousand sq. m. Supply volume equals 45.3 thousand sq. m, Pushkin amounts to 43.2 thousand sq. m, Pavlovsk amounts to 2.1 thousand sq. m. In Q3 2015 there were realised about 8.7 thousand sq. m (8.3 thousand sq. m in Pushkin, 0.4 thousand sq. m in Pavlovsk). The total number of sold flats is 140.
‘Of course, clients are not interested in entire territory of Pushkin and Pavlovsk,’ Ekaterina Gurtovskaya Head of the Marketing and Sales Department in YIT St. Petersburg Company (developer of INKERI residential complex in Pushkin) notes, ‘along with the quality of the product high demand for flats in particular complexes is explained by the proximity to the parks and infrastructure objects’.Ekaterina Gurtovaya notes that the housing being constructed in Pushkin is certainly more in demand than in Pavlovsk. Urban infrastructure (both social and commercial) in Pushkin is more developed. Besides, Pavlovsk is almost unknown for customers from other cities, who are quite a lot.
According to “Peterburgskaya Nedvizhimost” in December 2015 the average price for 1 sq. m in mass-market houses in Pushkin was 111.9 thousand Roubles. This was by 31% higher than average price in subordinated to Petersburg areas. In Pavlovsk it was 83.5 thousand Roubles, that was by 2% less than the average price in subordinated areas. The average price for business-class sq. m in Pushkin was 143.5 thousand Roubles, that was by 15% higher than in subordinated areas of St. Petersburg. Stable prices in Pushkin and Pavlovsk were maintained by the fact that there property was never built in abundance and demand was always constrained by the supply volume.
‘Of course, among projects under construction exist separate ones with not enough customers, but the reason of this is a balance of price and quality,’ Maxim Ignatovich notes.
To go into fields
Predominantly infill development is planned for future in Pushkin and Pavlovsk, and also the following development of the current major complexes: for example, RC “Aleksandrovskiy” developed by “Pushkin” company, Inkeri RC developed by YIT St. Petersburg. Areas in the intersection of Kuzminskoye and Peterburgskoye highways may be considered as reserve territories. Several construction companies such as “Kolwey” and “Sfera” have announced their plans of residential development in these areas.
In Surveyor Internatioanl Group they say that the main territorial reserves are vast fields adjacent to the south of Pushkin and extending along Pavlovsk and the exit highways almost to Kommunar and Kievskoye highway. Some part of these lands is occupied by the industrial zone adjacent to the new housing of Pushkin. Relocation of this zone is being discussed for several years and sooner or later will be developed. The remaining areas are unused agricultural lands.
Meanwhile, although the area for development in this location exists, it is not certain that it needs to be massively built up. ‘Excessive supply volume in several projects under construction is not needed here as in any other district of St. Petersburg,’ Ekaterina Gurtovaya notes. That is why stable demand may be expected in the presence of reasonable supple volume, for really successful projects – quite high demand volume may be expected.
Maria Mokeicheva - email@example.com
"Delovoi Peterburg", 12/20/2015
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