YIT is piloting dynamic pricing of apartments and parking spaces in the Russian market
YIT Corporation News, March 27, 2018 at 14:30 p.m.
The new pricing model aims to improve return on capital and working capital turnover.
YIT has been piloting a dynamic pricing model for apartments and parking spaces in Russia together with Priceff.
Housing prices in Russia typically change during the construction phase as demand varies.
“In order to improve the working capital cycle, it is important that pricing can be adjusted according to demand. It was great to have the opportunity to test how new technology can help real estate development in this respect,” says Jukka-Pekka Uuskoski, Senior Vice President, Business Development at YIT.
In the pilot, new homes were priced according to demand, utilising Priceff’s auto-dynamic pricing service (API cloud service). At first, the prices were updated once a week and, later, twice a week. The pricing service was able to find and adjust the prices to match the demand at each moment.
The pilot was so successful that YIT and Priceff are exploring the possibility of continuing the co-operation commercially.
“As far as we know, this is the first time that auto-dynamic pricing based on actual demand has been used in the pricing of new homes. Our goal is to help the construction industry to implement more efficient pricing methods,” says Priceff’s CEO Riku Aakala.
Further information:
Jukka-Pekka Uuskoski, Senior Vice President, Business Development, Housing Russia, YIT Construction Ltd, +7 916 362 5147, jukka-pekka.uuskoski@yit.ru
Riku Aakala, CEO, Priceff Oy, +358 41 547 4353, riku.aakala@priceff.fi
Hanna Malmivaara, Vice President, Communications, YIT Corporation, tel. +358 40 561 6568, hanna.malmivaara@yit.fi
YIT is the biggest construction company in Finland and a major player in Northern Europe. We construct and develop apartments, business premises and entire residential areas. Furthermore, we are specialists in infrastructure construction and paving. Together with our customers, our 10,000 professionals create increasingly functional, appealing and sustainable cities and living environments. We have operations in 11 countries: Finland, Russia, Scandinavian and Baltic countries, the Czech Republic, Slovakia and Poland. The new YIT was created by the merger of YIT Corporation and Lemminkäinen Corporation, both over 100 years old, on February 1, 2018. In 2017, our combined annual revenue amounted to over EUR 3.8 billion. YIT Corporation’s share is listed on Nasdaq Helsinki. www.yitgroup.com
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