Can they though? Governments are really budget contrained. At current prices, the wages (demand) and land prices (offer) cannot meet and be in equilibrium. Cheap debt used to fill in the gap but not anymore. Now, wages cannot raise meaningfully in real term even w massive strikes. Land prices need to come down.
Can they though? Governments are really budget contrained. At current prices, the wages (demand) and land prices (offer) cannot meet and be in equilibrium. Cheap debt used to fill in the gap but not anymore. Now, wages cannot raise meaningfully in real term even w massive strikes. Land prices need to come down.
Development Appraisals have been sub 15% for a while now leaving very little margin for contingency and profit. I’d agree Land prices will soften (are softening) but more likely is that productivity will reduce further leading to more supply issues. On top of this, turnover of second hand homes will stagnant as rates increase and affordability contracts.
Look out for more government interventions e.g. VAT reduction on new home sales to bolster Builders margins.
Can they though? Governments are really budget contrained. At current prices, the wages (demand) and land prices (offer) cannot meet and be in equilibrium. Cheap debt used to fill in the gap but not anymore. Now, wages cannot raise meaningfully in real term even w massive strikes. Land prices need to come down.
Development Appraisals have been sub 15% for a while now leaving very little margin for contingency and profit. I’d agree Land prices will soften (are softening) but more likely is that productivity will reduce further leading to more supply issues. On top of this, turnover of second hand homes will stagnant as rates increase and affordability contracts.
Look out for more government interventions e.g. VAT reduction on new home sales to bolster Builders margins.