2013: A living space oddity
ResidentialA huge supply of homes. Prices at rock bottom. The end of the ?Family's Own Home' scheme. Throw in the development act and the fact that banks are unwilling to lend, and you have developers facing a very hard year
What are housing developers most afraid of? Their main fear is that the price war will only get more aggressive - and their anxiety is intensifying. This will in turn put pressure on them to reduce their margins, lowering the profitability of their projects. The end of government support for the sector in the form of the ?Family's Own Home' programme, followed by the announcement of a new scheme for refunding mortgages, might result in buyers putting off apartment purchases for at least a few months. Some of the unsold finished apartments will have to be sold without any profit. Is it possible to look on the bright side in such a situation? It turns out that it is indeed! We will outline a few scenarios which, if they materialise, will allow residential developers to survive the grim times ahead for them.
Have we hit bottom?Firstly, a few observations, numbers and a touch of doom and gloom. The price war is a fact. The intense competition on the market can make buyers feel spoilt, as
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