Orco: January residential reservations increased by 40% y/y

Our view: This sharp increase could have been due to milder winter which leads to sooner-than-expected completion in residential construction. We see also uncertainty about VAT as a positive factor in boosting January figures topped with gradual increase in average wages. Governement approved in early February that residential construction up to 120 sqm and 350 sqm for apartments and houses respectively will be taxed by lower VAT. We see this news as positive.