Base price of Mainland is actually up!

I don't remember this blog post either. However, I've always believed that people buying sims in auctions for US$ and receiving payment in L$ for the parcels they sold was at least partially intended to stabilise the LindeX. At the height of the land market, 20 sims a day selling for US$3000 each meant US$60,000 worth of L$ a day being sold.

As a comparison, 55,845,737L$ were sold on the LindeX yesterday - that's a little over US$200,000. So I don't think it's too much of a push to state that mainland sales do (or did...) form a large part of the daily volume of the LindeX, all within a fairly narrow band of prices.

Thats because it does not exist.

until you go in and carve up another 512 hey.

When I checked about four hours ago (8 am, California time), there were 13 parcels for sale at 6.1-6.2 L/m, so it looks like that price point is still holding for now.

There aren't many parcels for sale for these low prices though... the last parcel on the first results page was at 6.5 L/m. I don't track this particular number closely, but when I've sold parcels in the past, being 0.4 above the lowest price was usually enough to knock me off the first page.

The Second Life Economy
http://blog.secondlife.com/2007/08/14/the-second-life-economy/

Relevant part below (with links turned into URLs). They discuss at length how they stabilize the Lindex, and land supply is not listed. They DO discuss how accepting L$ for land sales or tier payments would affect the L$ supply, but again, no mention of land supply rates.

*************************

Given real world economies have seen currency collapses and hyperinflation, what’s to stop that happening in a virtual one?
The Second Life virtual economy is much more akin to a completely paper- currency (cash) based economy where the total value of all currency can be ascertained simply by adding up the sum of L$ in all active accounts. Linden Lab increases the supply of L$ in-world in two ways: (1) as a part of the premium subscription stipends that it distributes each week, and (2) by selling L$ directly on the exchange. Linden Lab reduces the supply of Linden dollars in-world by accepting L$ for certain in-world system events such as uploading an image or posting a classified advertisement. These are known as sinks. The various Sinks and Sources and their amounts can be seen here.

https://secure-web8.secondlife.com/whatis/economy_stats.php

Given the expanding population and popularity of Second Life, expanding the money supply has to date been the most frequently used tool in our toolkit. As population growth stabilizes, the use and development of Linden Dollar sinks will become more prominent.

Would these sinks be sufficient to adequately re-adjust the money supply?
Currently there is approximately L$2.6 billion in world held by 1.7 million accounts. The average held in each account is L$1,687 and the median is L$161. In an average month, more than 75% of the in-world money supply moves through the LindeX. Each month our sinks represent about 3% of the money supply, stipends represent 7% of the supply, and our L$ sales on the LindeX represent from 0 to 5% of the supply.Although we currently do not accept L$ in lieu of land sale and maintenance fee payments, we could. Acceptance by Linden Lab of just one month of land sale and maintenance fees in L$ denominated payments could cut the in-world money supply by more than 50%. In general, its our goal to maintain large enough sinks such that the only day to day and minute to minute mechanism that we need to manage the exchange rate within a narrow band is to sell L$ on the exchange. Since August of 2006 this has kept the exchange rate quite stable as you can see here.

http://secure-web8.secondlife.com/whatis/economy-market.php

I'm no expert on the land market, although I have yet to lose any money in it, thanks to listening to Ray. I now half a sim, but IF Itried to seel it off today, I would take some serious losses. I have no intention of selling in the immediate fute however, so the paper losses or profits are irrelevant.

I think there are several facors at play here in the land market, most having to do with supply and demand. The amount of parcels on the market certainly impacts land prices and it doesn't matter really if the supply is whole, bran new sims or a little 512 sm plot on the mainland. More supply = lower prices, its that simple.

The are other factors which have an effect on demand. Simply put, "do people want more land?" and "Are they willing to pay for it?" VAT has had a large imapct on the Euro population. Effectively, our European friends just had their tier raised almost 20% with no increase in service. This resulted in some Euros selling off, in part or in whole, and others holding on but refusing to buy more and increase already difficult tier fees.

Even more widespread is the "hold the breath and wait for January" crowd. No one rightnow [other than maybe LL's favorites] knows what's going to happen with tier fees. They SAY they will give 60 days notice, but they SAY lots of things. I tend to believe they WILL give 60 days notice, but I would not bet any money on that. The BIG question is will there be a tier increase after the first of the year? I am really unwilling to increase my holdings due in part to general dissatisfaction with the platform and the uncertainty over tier increases.

I think that a tier increase would be an incredibly unintelligent thing to do, so I believe it will happen. What kind of train wreck results from that remains to be seen.

Sooz

Up to a base of L$6.5 a meter tonight...cool to see people are actually buying land again.

Bully for you. Same in my primary sim, Purple, but there are very few market immune sims. Most sims are very market sensitive, particularly the newer ones, mainly because of adfarms. Now, I'm not slamming adfarmers. I don't like them but they aren't cheats or anything. However, all you need is one adfarmer cutting up one 512 lot in the right (or wrong) space, and a sim where land was selling for 12 per meter one week, now sells for 8, if the residence are lucky, two weeks later. Very few sims don't have adfarms in them. Those that do are price givers, not price takers. However, all you need is one small time owner cashing out, and an adfarmer to buy, for the sim's value to spiral downwards.

One last note, this is not an historical analysis of SL real estate, but my current view on high value mainland. This only applies to current situations where land in the sim sells consistantly 3 points or more above the market base.

This sad fact should be apparent to LL and they should take action to stop ad farming. Dozens of suggestions of ways to do this have been made by residents. Yet ad farmers continue to spread their blight and devalue the mainland.

There are now 30 parcels at 6.2 and 6.3.

Are we figuring base the same way? Are you limiting your search results to parcels over a certain size? I get 6.5 if I limit to 512m and over.

Yeah, I start at 512. Anything under is most likely ad-adjacent.

Ah, that explains it.

the only people paying over 6.3 now are bots and newbies thats about it

This is just anecdotal but it seems that end users aren't selling as much as earlier. Maybe most that decided to sell off because of VAT have already done so.

Bots never buy above the base. They are always set to buy land below it. That's why bot runners are among the few land brokers that make money these days.

Anyone who buys land is buying L$6.5 or over if they are not buying directly from someone setting land to them below market value. So you are 0 for 2. But thanks for playing.

Whether its stocks or land market, its perfectly fine to sell off in order to gain capital (L$) and make a better investment with the money. Its important not to be too emotionally tied to how much you paid when you bought your land in the first place.

I have some plain old flat mainland on roadside that I paid 13/m for back when I needed it and that was a good price at the time. I would have no qualms whatsoever selling that today for the going rate of about 7.5/m - as long as I immediately turned that around and put the money into different land that is under-appreciated by today's prices and could turnaround for more in the future. It's making the best of the situation, and positioning yourself to recover your initial investment in the wild, crazy chance that land prices skyrocket again.

So really - "You lose nothing unless you ~get out of the market~ by selling at too low a price."

ROFL!!! Then I must be a noob and/or bot

There's 'land' and there's 'land'.
The only people gauging land at L$/m alone are bots and newbies.

Indeed, all land isn't equal!

Yes. By selling land for less than the purchase price, you do gain capital (L$).
More importantly, you gain available tier without having to eat a tier jump.

A friend of mine sat for way to long on land because she couldn't get her head around that.
She could have dumped early in the price plunge and bought fabulous land in Corsica.
She ended getting rid of it at bottom price in small plots in the middle of a flat wasteland of crap builds and rotating ads.
In the meantime, the prices for the kind of land she could have had for 10 in Corsica (Ocean-side) are heading for 20.

Ocean-side is heading for 20 again? I would think it's got a way to go before it sells at that.

I bought a 1024 plot at 10sqm on the frontage of a water sim and figured I'd park my boat there as a bay dock type area, set it for 20sqm. Heck, everything has a price right? It was bought within a week. Thats craaazy!!

Perhaps it was the way it appeared to the buyer? No clue. Now I'm dockless.

Firstly: Definition of 'Oceanside' = Land with at least one boundary being on a Linden Protected water sim - and usually a group of such sims.

I will admit to having a slightly blinkered view. I'm not in the land business, and I'm mostly looking at prices in Corsica unless I'm helping a friend with land in the old continents.

I judge the 'Oceanside' price by looking at groups of plots on offer from land dealers and not by the fantasy prices asked by wannabe baby-baron-Anses.

15 /m is common, but the number of plots at that is steadily shrinking.

The base price for oceanside can be judged by looking at what a baron does with a whole sim currently.
A German player had an entire sim. One boundary was on Linden Ocean. Another boundary was on a Linden channel.
Maybe it was the sudden VAT wallop. Maybe it dawned that a PG sim bordered by Linden PG water was not the best place to run a BDSM operation
Anyway, the whole sim was bought by a dealer.

An interesting price mix ensued.

On the Linden Ocean border:
He's selling narrow 4096 strips with a 32m ocean boundary at 12.21/m
He sold a strip of 512's and that buyer is reselling at 26.37/m (more on this below)

I bought the 1440m corner of the Ocean and channel at 16.32/m

On the Linden channel:
He had marked a row of 512s along the complete channel at 14.65/m
He's now marked the row down to another dealer at 13.67/m. That dealer is flipping them at 18.93/m. They are selling.
He's selling the land behind the strip (i.e. not connected to the Linden water) at 8.2/m


The 26.37/m price?? Crazy?
If you look at the yellow connected to Linden oceans in Corsica, you'll see that most of those plots are 512s and have prices of 12500 and 13500. (24.4 to 26.3 /m)
Then there's a collection of 512s between 9000 and 10000 (17.5 to 19.5 /m)
I've seen a number of the 13,500 selling. They can also be rented at L$351/week (L$3/prim/week) Very soon, those plots will be the only ones left.

LL has more sims to auction that will have boundaries on Linden oceans. Most of the sims to be auctioned are granite land mass.
Unless LL only release sims that have Linden ocean boundaries, then there is no way that more new Oceanside land can come quickly to the market without a considerable effect on the price for granite.

I'm not talking the price up. My land is not for sale. I'm saying what I see on the ground.

Only seven listings at L$6.5 per meter for mainland. Then we go to L$6.6 as a base.

Also of note. I had a plot listed at L$6.5 per meter last night and it got five people looking at it in the first minute it was listed and it sold after 2 minutes. A few weeks ago, it would take an hour, even if you listed at the top of the list. Maybe CSI did bring in some new folks, or the warm weather is gone and people are finally returning to give us the seasonal boost a month late...

Anyone else noticing their biz sales or land sales picking up?

This forum isn't for market discussion; there are many Resident Sites where this discussion is appropriate — Resident Answers is for Resident-to-Resident help. I'll close this thread...

I've received a small flurry of PMs about closing this thread.

Here is the tag:
Source: AR
Reason: Off-topic for the forum with taste of market manipulations.
Action: Lock

The old Economy forum was closed because it was being used almost exclusively for market manipulation. I want to avoid that.

Discussing land management is fine but discussing the prices and fluctuations soon leads to people trying to manipulate the market. The threads I'm on the lookout for are "I'm selling, so should you", "The sky is falling" and "The time to buy is now".

We welcome all discussion about managing and trading of land as long as the forums aren't being used inappropriately.