Page 54 - Mellby Gård Yearbook 2018–2019

ÄLVSBYHUS
PLUCKY 75-YEAR-OLD TAKES THE INITIATIVE IN THE SWEDISH MARKET FOR PREFABRICATED HOMES
After a number of more difficult years, Älvsbyhus now sees a brighter market. With new models of single-family homes and a partly new strategy, the MD of the 75-year-old company, Kent Johansson, views the future with confidence.
For Älvsbyhus, 2018 was a tough year. During the year, the company completed its investment in modern construction elements meeting all energy efficiency requirements. The start-up was complicated, leading to delays that partly affected deliveries to customers.
The Swedish market for single-family homes also continued to be adversely affected by down-payment requirements and stricter amortization requirements, which affected manufacturers of prefabricated homes.
“I raised the issue with the Prime Minister when he visited. He was well aware of the problem, particularly in relation to the traditional Social Democrat notion that everyone should be able to afford to build their own house. Although we do not believe there will be any rapid change in the current regulations, we do see the market brightening in 2019”, says MD Kent Johansson.
However, there are also positive factors providing traction: interest rates have been stuck at record-low levels and there is considerable pent-up need for additional housing. Several municipalities are
also heeding the need to make affordable land available to private individuals so that they can build single-family homes. At the
same time, housing shortages and rising prices for homes in the metropolitan areas are helping additional locations become attractive for new production.
“We can clearly see the effects of growth spreading further out from the metropolitan centres, with towns such as Eskilstuna, Norrtälje and Uppsala growing and become attractive for new production. At the
same time, we are to some extent adapting our strategy to meet the new conditions, partly by acquiring land to a greater extent, land that we offer to customers”, says Kent Johansson.
One example is that the land company started by Älvsbyhus two years ago has acquired a plot in Norrköping, for which detailed planning is now being conducted for the construction of about 50 single-family homes.
“Another strategic change involves realizing that it is much easier to sell fully completed new homes. For this reason, we are building show homes to a greater extent than we did previously”, says Kent Johansson.
Älvsbyhus continues to invest in new models of single-family homes, striving to use the same base plate in all of them for increased efficiency. However, differences between markets necessitate
local adaptations for the Swedish, Norwegian and Finnish markets respectively.
“We launched a small house intended for older customers in two- person households in the Finnish market seeking smaller, space- efficient housing. This is a 63-square-metre bungalow – with a sauna of course – which has achieved great success”, says Kent Johansson.
The Finnish market is pervaded by caution and frugal customers who quite often pay off their mortgages within 15 years. For Älvsbyhus,
it is a matter of increasing volumes with the help of attractive new products. In 2018, the company sold about 80 houses in Finland.
54 | MELLBY GÅRD – YEARBOOK 2018 / 2019