2 ms·
The play with evil capitalists trying to force pricing out with taxes might be far-fetched but drip-feeding housing to help maintain inflated prices is a well-k
by piva00 4y ago
The play with evil capitalists trying to force pricing out with taxes might be far-fetched but drip-feeding housing to help maintain inflated prices is a well-known tactic of developers in London, probably elsewhere it applies in varying degrees as well.
For a well-financed developer it's a much better deal to drip-feed some 30 renovated apartments at 1x over 1-3 years than sell a chunk of 30 renovated apartments at once and at 0.8x due to the increased supply. If they wait they know the demand will still be there to sell at their full 1x.