Just lately, there’s been a reasonably assured assertion about Authorities Land Gross sales (GLS), and the way it might decrease a few of the prices for builders. One suggestion is that, with land costs being extra engaging (learn: cheaper), it might assist to reasonable future new launch costs.
But when I’m a purchaser, I wouldn’t have a good time simply but. Put it this manner: Have you ever ever seen eating places reducing costs as a result of the price of elements went down this 12 months?
To be extra direct: builders don’t simply value their initiatives based mostly on land prices. That’s one main issue, sure. However one other equally significant-or I would say extra significant-factor is what the market can bear. For instance, if the present market price is $2,400+ psf and there are nonetheless patrons, then that value level will doubtless keep. It doesn’t matter if the reserve costs for GLS websites fall….
