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Almost every unit was once luxury and priced accordingly. Adding supply at the top of the market reduces pressure other price segments. And if they stay empty,
by Kalium 10y ago
Almost every unit was once luxury and priced accordingly. Adding supply at the top of the market reduces pressure other price segments.
And if they stay empty, eventually things will crash and prices will drop. It's happened in other cities.
- ambicapter 10y agoIsn't this just trickle-down for housing?
- Kalium 10y agoTrickle-down was that if the rich have more money, plenty will spill over to the poor. It fails because people who have more money will tend to keep it. With housing, there's a very low ceiling on consumption. Almost nobody lives in two apartments just because they can afford to. So without sufficient supply, you get people who say "I had to buy an ugly, somewhat distressed property in order to enter the market".
- stale2002 10y agoEvery luxury condo that gets built is 1 less rich person competing for less expensive housing.
- batbomb 10y ago> Almost every unit was once luxury and priced accordingly Which units? There's plenty of old housing stock which most definitely was not built as luxury housing.