Poor housing outlook not deterring land buyers

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(22-02-2014, 07:45 AM)arriyana Wrote:
(22-02-2014, 01:39 AM)corydorus Wrote: Housing is big ticket item which average folks take lifetime to service them .To know the developers can whine for not making 20% margin out of many people pocket is an insult. Even 10% i find is too much. We certainly need more competition to lower social cost.

It is not particularly fair to say this because property developments carry higher risk than most industry. Each property takes 3 years minimum to complete and is not unlikely that cost could escalate very quickly in short span of time due to resource shortages. A higher margin compensates for risk taken.

Look at Tigerair. They have planes that can take many many years to recover their capital. I do not see they have high margin and in fact losing money if they can't do it efficiently. Why ? Competition put them on their toes.

My message is actually directed at more towards regulatory of giving huge benefits rather than developers at the huge expenses on average folks lifetime of saving. Is an enormous social cost to support a few developers.
Why are they doing that ?

Just my Diary
corylogics.blogspot.com/


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RE: Poor housing outlook not deterring land buyers - by corydorus - 22-02-2014, 09:23 AM

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