Originally Posted by
SpinCity
I just simply reply to your theory of selling from top floor with increasing discount, value will hold
For example, assuming for a 20-story development, the average selling prices of 1-5, 6-10, 11-15, 16-20 floors are 850psf, 900psf, 950psf, and 1000psf
if launch 16-20 floors first with no discount, 2nd phase 11-15 floors with 5% discount, 6-10 floors with 7% discount, and lastly 9% discount for 1-5 floors
Buyers will see the price of this development is actually going down gradually when new phases are released, how can the value hold?
As for property cycle up and down, this is a new variable that is not in your theory. In fact, with increasing discount, developers are actually signaling their desperation to sell , actually a negative sign
Even if you take property cycle into the equation, when it is on the up trend, no need to give more discount, when it is along the down trend, value won't hold anyway since it is in the down trend