After going through the research Ben Myers from Urbanation gave us for the show I noticed something interesting to follow up on a previous blog post. Beginning of this year was real estate Armageddon.
Sales of new condos went down to unforeseen levels. Developers were on average selling less than 5 condos per project for the first quarter...coming from a time when the developers were used to 25+ units sold per project over a quarter.
How would you react if your sales fell to 1/5th of the level it once was? I'd be sweating bullets and slashing prices.
But an interesting thing happened...prices didn't fall (resale went down slightly showing that individual owners panicked more than developers).
Simple economics here....you lower supply to keep prices the same (is life ever this simple?)
Friday, November 20, 2009
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1 comment:
I think you did a great job that is why the prices didn't fall. :)
condo in Philippines
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