4 ms·
My city is popping up condos at a rate I haven't seen since I was in China in the 2000s.
by ozmodiar 3y ago
My city is popping up condos at a rate I haven't seen since I was in China in the 2000s.
- wubrr 3y agoI bet 80%+ of that is bought by investors before construction completes.
- ozmodiar 3y agoThey openly advertise on the side of the buildings that x% of units are already sold while there's barely a frame up.
- polski-g 3y agoIf enough housing was being built, then the expected return on houses would be negative and investors wouldn't be buying them.
- wubrr 3y agoYou're ignoring the fact that most of the new supply being purchased by investors means they have more power to increase rents, re-leverage their existing real-estate and buy up more. Continuously increasing real-estate prices and rents until the bubble bursts. If everything worked based on the most basic econ101 principles, we wouldn't have any bubbles in the first place.
- catskul2 3y agoWhich city, and how long has that been the case? There's likely quite a bit of backed up demand. Typically when supply doesn't meet demand, the price goes up, the supply responds, and only after that does the price level off (or come down).