If you began a residential project back in 2007, expecting prices to continue rising until completion in, say, 2009, then you’ve either received a rude awakening, or the market’s about to slap you. Resi agency Lexxus makes it all pretty clear: at the end of Q1 2010, there were 4,719 units on sale in 114 units. Getting more specific, 81 of those projects are completed, with 2,600 empty units in them.
The good news for new developers is that they’re based on the new price expectations, which Lexxus claims are at about 2006 or 2007 levels. This will make them very competitive. That’s obviously not such good news for completed projects that are still 40% vacant.