What happened with the waterfront powermove?

I've noticed the once rather expensive waterfront in my sim, owned by the person who made the powermove a while back on waterfront, most of which has remained unsold, has dropped dramatically in price. Has anyone observed if this is happening on a wider scale? Have the new higher prices been sustained, or did the artificial bubble burst?

And should I have called this thread zOMG stipends or something?

People placing buy too high, not selling, and eating teir I imagine. Trying to get rid of the load quicker.

Please, lets leave stipends off at least ONE thread.

*resists urge to say something about stipends*

Damn you Leena I thought someone had an answer to my question!

I did My first reply.

Oh I know Jonas and ty ... clearly these parcels weren't shifting, and were eating tier, but I was wondering if this was occuring more widely, and whether the high prices were ever achieved in a big way, and if they're coming back down to earth...

My waterfront parcel was fantastic value compared to what these unsold ones were priced at... and now they are priced significantly below what I paid for mine.

Maybe this thread will help.

Yes that is exactly what I'm talking about. Question is, how did it pan out?

Not sure. Maybe in a small short term payout way, but for all those that stayed the bubble out..major loss.

I tend to have a theory that someone was falsely inflating the prices. Really its a patchwork growth of flowers.. one set of wildflowers profit, the other loss.

Yes the prices were artifially inflated. Here's what I noticed though, though I haven't been paying enough attention to all the waterfront to know whether this was the case generally... others who dealt in waterfront, raised their prices slightly in response but still kept them fairly realistic... they seemed to sell pretty well, the others, not so well. No real surprise there. I wonder if enough was sold at the higher prices to make it worthwhile, and if we'll see waterfront dropping again. Was the strategy of cornering the market and dictating the price successful? I'm curious about this one for some reason...

I've been watching some parcels in a neighboring sim that have been up for sale for over two and a half months - they were bought by a big name land baron and prices set at totally unrealistic amounts for landlocked parcels, even if they are fully terraformable. I've been wondering how much tier said land reseller is going to pay in their determination to get top dollar for these parcels. As it is, the land sits there empty for months and months. At some point, it becomes a wash and the reseller actually starts to lose money on the sale when you factor in what they paid in the first place plus the tier. Not exactly the smartest of business decisions since flipping property fast is the key to profits in real estate....

Property that doesn't sell within 4 weeks is overpriced.

Oh thanks Isablan... interesting... maybe this is more widespread than just my corner of the world. I'm just glad I didn't pay those sort of prices.

It is hard to say if this was sucessful for the person initiating this cornering move. There were never many transactions at the prices of 15L$ she initially asked. Many baby barons speculating on prices in this region and "winning" sims at the auctions, that only would have been profitable at those prices, will have lost quite a few dollars.

Prices are back to 10L$/sqm or less again these days.

This does not mean that the initiator of this move did not profit, though. If you are well diversified and own large areas of land on private sims, there are many ways to make a profit even if your waterfront on the mainland does not sell. Those high prices might drive people who want waterfront to your rental offers, for example. And you might succeed in inflicting losses at your competitors who joined you in this scheme (at much higher procurement costs).

Business is complex. Selling your goods is not the only way to win - or at least kill the competition.

Thanks Dana, I was hoping you'd answer. Interesting reply, I guess whether it was successful depends on what the strategy (ies) was. I hadn't thought about some of the potential outcomes you mentioned. Ok now my curiousity is satisfied.

Seem to be at L$12/sq.m. in my area.

I've been watching this with amusement. When I first purchased my current land, I was considering between it at another parcel in the same sim (the entire sim was available, apparently it had just been recently auctioned), but that other plot was a tad more expensive (L$44,999 for 4096 sq.m.), so I picked the one my home is currently on. I kept my eye on that parcel though, just out of curiosity. It remained unsold for a few weeks, even after everything else in the district was sold. I figured eventually the price would come down since no one was buying for that price. Finally, the price changed -- to L$89,999. Huh? The funny thing was, the timing was incredibly poor -- if she'd left it where it was, I would have bought it about a week later, as I decided I needed more land in the sim for the prims if nothing else. Ended up buying land from a moving neighbor instead. In any case, the price remained at that for over a month I think, then she gradually started lowering the price. It's now down to the "bargain" price of L$51,499. I'm sure it will sell now.

The plot's been sitting there chewing tier since the end of January, when she couldn't sell it for L$44,999. I'm finding it hard to believe that she actually made enough money with this move to justify the costs, but I don't have the sales figures, so what do I know. All I know is, I'm still interested in the land, but I'm certainly never paying over L$44,999 for it, just out of principle. When she decides to actually lower the price of the land below what it wouldn't sell for, then I'll take another look...