Cala pulling out the stops to steady sales

Published on Saturday 28 November 2009 12:22

HOUSEBUILDERS still need to address issues affecting potential buyers, such as lack of mortgage finance, a leading industry figure has claimed.

Kevin Whitaker, managing director of Cala Homes (East), said the industry was adapting to the market in the downturn by being more flexible with its sales offerings, including assistance with mortgages, affordability and incentives.

He said: "Given the nature of the economy and the housebuilding sector over the last year, there has been a need to adjust house prices in line with market demands."

Such measures, he said, had led to a steady sales rate on all of Cala's operating sites.

One-off projects nearer the top end of the market, such as Cala East's Pavilion development in Inverleith, Edinburgh, were attracting a high number of visitors and reservations, Whitaker said.

The penthouse at the Pavilion is being marketed at 1.5 million. It takes up the entire top floor of the Pavilion and is attracting interest from international and domestic buyers, partly due to its view of the Edinburgh skyline.

Sarah Stanger, sales and marketing director at Cala East, said: "We have invested more per square foot in the Pavilion than any other developments to date."

Cala Group is close to completing a major bank rescue deal that will underpin its future after running up a 266m pre-tax loss in 2007-8. It is forecasting another loss in the year to June 2009.

Cala expects to break even in the current year before returning to profitability in 2011.