Auctions finally hitting the minimum

Is this the beginning of the end? A sim just went for $752, minimum bid is $750.

Vianustonic (128,12 Mature 65536m

Winning Bid for this item: $752.00
Opening Bid: $750.00


Member Bid Amount Qty(Won) Bid Date (EDT) Status
Anonymous
$752.00 1(1) 6/4/08 11:39 AM Won
Anonymous
$751.00 1(0) 6/4/08 11:39 AM Lost

Oh my. The land bubbles are expanding and popping at a dizzying rate.


Now we just have to all sit tight for the next big in migration of new landless folks to start the bizarre process all over again.

Well part of it is likely a metric that says X number of users, we need Y amount of land.

A lot of the land is tied up in overpriced lots purchased by ad farmers, and bots

are these grassy sims, granite, or waterfront properties? i think that makes a huge difference.

Wonder if all that money is pouring into Bay City. Literally some of those parcels are going for $1000 or there about. Not all, not many, but there was at least one $1000+. Most seem to be around whole Sim prices for 1024's or there abouts. http://www.sluniverse.com/php/vb/business-land-economy/11489-bay-city-auction-watch-thread.html

For example: Bay City parcel 3HH - Handa (88,15) 1024m: $1223 (L$325,340.00)

Indeed they are all turned around for resale too (never mind they will not get the return on what they paid since they plan on expanding the bay city theme into other sims attached to it)

if Linden Labs thinks the land is worth only $750, why would anyone be stupid enough to pay them more?

For protected waterfront, it's worth more than that.

who says?

My guess is that all the potential buyers have spent all their monies in Bay City and are waiting to make it back before they return to the auction page again. (=_=)y

As 512M lots are now starting at around 2000L pouring more and more land into the auctions will keel the prics rock bottom for a while.

A lot of these lots are being bought and immediately broken up into Ad-farms because they are worth more like that.

Well, not *all* the land in Bay City is being sold to land flippers, though I would bet most of the insanely priced stuff is. There are several people making purchases there with a serious intent to use the land within the guidelines for the sim.

I would expect that most of the really badly priced stuff will either drop drastically in asking price, or will be abandoned and re-auctioned, once the land flippers find out that no one is as stoned out of their minds as they were when they bought the land at such inflated prices and then tried to jack the price up even further.

As for mainland auctions, doesn't surprise me at all. They flooded the market to saturation, and beyond.

The market does. If it was protected by Linden Ocean, it's a rare thing... it means no horrible neighbors on at least one side.

i think the market has been saturated some weeks ago, and its only just begining to show, the steady 4.0/4.1 on land-sales has dropped to 3.7 in the last 2 days, and i wouldnt be suprised if it dropped another 0.5 to 1.0 very fast.

good, though there still seems to be a lower limit for mainland buy prices:
0,0114440918 USD/m²
3.02980042 L$/m²

And the lower limes for maintenance (pay less monthly fee, the more land you own) seems to be somewere above 0,6 L$ per WEEK per prim for mainland, roughly 0.01 USD per MONTH per prim.

1m² holds up to 0,228881836 prims (floored).

Land will stabilize at the LL sim costs soon.

But good neighborhoods and locations will still be worth more to the right people.

Land speculation in a digital world is asking for trouble, because the owners of those worlds can usually add more land. Unless the digital world has a finite limit and can not really be added to.

The 512 near mine is finally going to auction, woot! It was bought last year by a newbie guy who was friendly enough, but he just rezzed some big boards and added some randomly placed objects then disappeared, leaving the junk.

$752 is already about 3.2.

If LL would do one iota of promotion to get new members in conjunction with the land flood, like just one TV commercial, we'd probably all be on easy street again.

Tier is now so proportionally huge in comparison to purchase price of land, renting is still an attractive option for people. On the other hand, with cheap land prices, everybody and his alt is going to want to try to become SL's next hotshot landlord with their hotshot business plan, and we'll be left with about 1 tenant per sim.

My new neighbour just bought a whole sim - flat, green, and with ocean views (although not right on the water). He told me he paid 3.9 per sq m. I shudder when I think of what I paid for my 4096 protected water plot!!

I tink so. The difference in price between a Bay City plot an a plot anywhere else is purty telling -- an even more so looking at how much some of these resellers tink they can get for 'em. Could buy a lotta mainland at some of them prices.

Mari

3,2 taxfree indeed, but tier is roughly 0.7, so its really 3.9



Also true, and i fear this will lead to many disappointed renters in the end

The number of Premium accounts has been dropping by about 1000 per month from December to the April count of 88,550
Less people to buy land
Maybe the leavers had land that is now on the market
More new sims being created.
Individual Bay City plots gobbling the wherewithal to buy whole sims.

For myself, I wouldn't particularly care if the "value" of my protected water dropped to L$3 a metre as long as I could continue to play with it.
If I sell any in order to consolidate, then I buy the replacement at the same price, so no "loss".

A few thoughts:

-I never thought I would see this day come. Even when they saturated the market for months last year, it did not go anywhere near this low. I think the reason why is there are a ton less new buyers in the market for SL land and existing buyers have all the land/tier they need.

-You can now get a full mainland sim for the price of 2 Bay City parcels and build your own Bay City. Of course, your tier will be considerably higher.

-If you were thinking of getting your purchase price back for the mainland you bought last year, fuggetaboutit.

-I would not be surprised if the value/cost of mainland doesn't go even lower. For LL, the new business model is All Tier, All the Time.

The reason for that is the land speculators who hope none are aware that LL is going to expand the bay city with more sims attached to it...

I disagree.
I don't see a big influx of new users coming in and not getting totally frustrated with SL to the point where they would leave before buying land.

Nothing kills a bad product faster than good advertising. They would be crazy to waste money on advertising right now until they fix the asset server and performance issues.