Just looked at the City Park sales pitch, especially the first bullet point which says ;- -Brno offers strong capital growth, predicted at 30% per annum Having bought on Nove Medlanky after reading similar such predictions almost 3 years ago the growth has been nothing like (PS own figures in September showed "Annualised Growth on Original List price: 5%" I would be very interested to hear from PS why we should believe the predictions this time?

Having now had chance to read the Prospectus I am amazed to see that PS are enticing people with claims that "Although we have seen Brno hitting around 30% for the last couple of years it still hasdnt peaked yet" WHERE? Certainly not PS deals. As I mentioned on the previous post PS own figures show Nove Medlanky at only 5% !!!

Pete - A really good question that I would like to see answered by PS. Possibly the fairly low recent valuation is due to comparison with the worst units yet to be sold? That sometimes keeps current valuations a bit lower than what you might be able to get on the secondary market. Do you know if all off plan units in nove Medlanky are sold?

PS Any Comment???

My unit in Pozan was showing quite low returns compaired to the others but then it suddenly went up from about 20% to 102% in one performance update. I wouldn't read too much into these performance reports.

I bought into a Brno deal 6 months ago so so I would also be interested in a PS comment though.

Hi Guys - thanks for this - PS comments and explanations are coming - our editorial director the deal broker and local property finder are all working together to provide you with a thorough reply - they've promised me that they'll get back to you on this forum asap.

Cheers
Neil

ps. The issue about valuations is a live and important one - there are, at last count, three ways of doing this - and as mentioned in my End of Term Report http: / /www .propertysecrets .net /article /property _secrets _end _of _term _report _ /1885 .html we are working on a way to systemise and report on these 3 different ways to assess the value of a property. This is currently in development and will go into Beta some time in the new year

Dear All,

i-PropertyAssets recently assisted a client wishing to sell an apartment in Kouzelne Medlanky, Brno. Our analysis provided the following information.

Kouzelne Medlanky
Original selling price 28,300 CZK/m2 (unit price plus kitchen), today the offer price for sale is 36,000 CZK/m2 (28% increase)

We received actual sales information from other units but could not qualify whether kitchens were installed in the units. Please see the file attached showing prices ranging from 36,900 to 41,800 CZK/m2

Additional information is posted below regarding other Brno deals.

Kosmova
Selling in 1Q 2005 for 24,500 CZK/m2 today’s price 35,000 to 40,000 CZK/m2

Red Hill
Selling in 4Q 2005 for 32,000 CZK/m2 today’s price 37,000 to 40,000/m2

Golden Brook
Selling in June 2007 for 32,000 CZK/m2 today’s price 36,000 CZK/m2


Assessments should always be analysed on an individual unit basis as aspects, seller and buyer personal circumstances and market conditions all vary and influence the situation.


regards

Oliver Watts

Attachment image to come....

Hi all

So just to tie this all together, Oli Watts has checked actual transactional data that shows that the price growth we had on Brno was understating the growth and we have seen 25-30% growth on the deals discussed.

We stand by our 30% per annum growth claim for Brno in 2008 - please read here for our 2008 price forecasts with a short explanation of each location.
http: / /www .propertysecrets .net /downloads /2008 _forecasts .php

Brno is enjoying a significant period of 2nd phase growth as the 2nd city in one of the strongest economies in Central and Eastern Europe.

And we have no reason to believe that City Park won't enjoy the same growth - especially as its a high quality development in one of the most desirable areas of Brno. There are no panalaks in the area, and the area is predominately villas, so new build apartments will be highly sought after as they will offer an affordable way of living in an aspirational area. Planning controls in this older part of the city are very tight so its unlikely that many new build developments will be constructed - again, making the likely demand for City Park very strong.

It has sold out to the local market within weeks, which is a very good indication.

Hope this answers your questions

cheers
Tim