New residential project in Salzburg: Sales stop for speculation gains!

New residential project in Salzburg: Sales stop for speculation gains!

Dossenweg, 5020 Salzburg, Österreich - In Salzburg, the large residential project on Dossenweg ensures heated discussions. Despite the massive planning and construction costs, which are estimated to be a whopping 138 million euros this year, the 51 condominiums and 69 building rights ownership apartments are facing a sales debacle. The response is sobering: While you originally assumed DIY houses, only around 350 interested parties have registered instead of the expected 1000 applications, as reported by the non-profit housing association Heimat Austria. This found that the strict contract criteria of the city, in particular the eternal speculation ban, deter potential buyers.

"The regulation stipulates that acquired apartments may not be sold by profit over the next 25 years," said Vice Mayor Kay-Michael Dankl (KPÖ Plus) in a statement. This also affects inheritance cases and divorces, which makes the purchase decision considerably more difficult, since families cannot expect financial protection by selling the property in an emergency. According to Dankl, changes to the award criteria should now help to attract buyers from other communities and federal states. However, these still have to justify their main residence in the project area.

projects under pressure

The Dossenweg project, one of the largest residential construction projects in Salzburg, also includes 138 rental apartments and was originally intended to be completed by 2026. However, the corona crisis and increasing construction costs have become inevitable. However, 750 square meters of special areas for a doctor's office and a café were planned, but these projects were canceled in order to create space for additional apartments, which made it more difficult, as Sn.at carried out.

The municipality will award the remaining apartments next November in a random procedure. The development on Dossenweg reflects the current challenge in the Austrian housing market, where the need for affordable living space stagnates and at the same time the offer situation due to high prices is becoming increasingly unattractive. The next meeting of the municipal building committee will be crucial to set new purchase impulses, and the housing cooperative is optimistic that these measures will bring the desired momentum.