Selvaag Bolig ASA - slower market, big value creation

Selvaag Bolig ASA sold 187 homes with a total value of NOK 710 million during the second quarter of 2017. Sales in the first half totalled 425 homes worth NOK 1 994 million in all. The average price per home in January-June was NOK 4.7 million.

 "Sales have been relatively good, but slower than in earlier periods. Particularly in Oslo, more second-hand homes have come on the market and buyers are more cautious. That's normal after a long period with extreme price growth and very few homes on sale in Oslo. However, the market in Stavanger is better than it has been for a long time," comments CEO Baard Schumann.

Construction started for 318 units, 210 were completed and 222 were delivered to the buyer. At 30 June, Selvaag Bolig had 1 589 homes under construction and 24 completed units which remained unsold.

"We've succeeded in selling well in the right places, giving record construction starts for the quarter. Our value creation is at a record level, which will yield very good results in the time to come."

Adjusted for Selvaag Bolig's share of joint venture projects, sales came to 165 homes worth NOK 633 million in the second quarter, and 355 totalling NOK 1 617 million for the first half. During the first half the company initiated the construction of 504 homes, completed 273, and delivered 307 to the buyer.

During the first half of 2016, the company initiated construction of 505 units, completed 273 and delivered 307. It sold 606 homes worth NOK 2 423 million in this period, at an average price of NOK 3.9 million each. Gross sales for the first half of 2016 came to 702 homes.

Further information from
Baard Schumann, CEO, Selvaag Bolig ASA
Telephone: +47 940 80 000, e-mail: bs@selvaagbolig.no

Sverre Molvik, CFO, Selvaag Bolig ASA
Telephone: +47 401 00 585, e-mail: smo@selvaagbolig.no