Sims Auctioned Off Left and Right - Supply vs. Demand

Has anyone else noted the tremendous number of new mainland slums, I mean sims, being auctioned off. At some point, the prices have to fall and drastically. I can't imagine there are too many SL'ers out there, even the land barons, that can continue to charge $3500 a day to their credit card.

The thing about real estate in RL is that the supply is fixed and demand generally increases (unless you are in some gawd awful place) and prices go up. But in SL, land is not a fixed supply, We have been seeing 3 to 4 new sims A DAY for a couple of weeks now. Thats $150,000 or so REAL ASS Money that some land barons have tied up. I think I would be VERY afraid. They either have to keep buying every new sim that comes on line so they can hold the 18L per sqm price or they can watch the prices all over the grid start slipping. ECO 101. When supply > demand prices fall and I sure see alot of yellow on the map (and plenty more purple as well). Not only is there a boat load of land for sale, but there is a ton more coming.

I was thinking about buying a large parcel to develop, but that is pointless now. Might as well wait becuase certainly prices can't go up anymore.

Oops, I said ass........ I sure hope I didn't offend anyone and get tattled on LOL.

I am deeply offended...

in this context it should be spelled A$$.

Ninja death squads are being sent to your RL location as I type this.

Increasing land ownership for some is just out of the questen. FOr al the screwy and broken things on sl, why invest even more not knows about the future!.NOWAY!

If you analyze the market carefully, you'll notice prices are already beginning to slip. It takes as much as 1-2 days to sell a sim at 14L/sqm now, 2 weeks ago, you could have sold it in likely 1 hour.

I missed this completely today...... try adding another 33% mainland sims......... the land guys have to be sh*tting.


New Continent Coming to Second Life Mainland
Tuesday, January 30th, 2007 at 1:00 PM PST by: Robin Linden
Over the last several weeks we have been adding land to the mainland at a fairly slow rate (4 new regions per day) while we complete the delivery of islands ordered at the end of 2006. The result is that pricing has been creeping up steadily and is currently about double what we saw per m2 in November. In order to meet the increased demand, our plan is to start to increase the rate at which we put mainland regions online.

Look for a substantial new continent to begin to appear off to the east!

This increase in land supply should also help to offset the impact of the use of ‘bots as high speed land scanners to skim off the lowest priced, and generally smaller, less desirable parcels. In addition, we’re looking at adding a step to the purchase process which should make it more difficult to use ‘ bots in purchasing land.

I don't see how adding 33% more land mass is a real issue when we've seen 50% more citizens in the past month or two and a tremendous demand for L$ reflected on the LindeX. The typical SL resident should find it a welcome relief in view of the climbing land prices.

That's exactly what Lincoln means -- those that are holding onto lots of land hoping to resell it for more are out of luck!

Not *real* money ...in some ways.
While I do not fall into the Land baron Class, I only have between 30k and 50k at one time . I have only been a Sl'er since the end of November but the ramp up was such that I have cashed out all of my investment and tiers and fees etc... so any balance I have L$ or otherwise does not represent an investment on my part. I suspect that the REAL land barons have been playing the market with Lindens money for a long time.
Not to say that it wouldnt be viewed as a loss when the market tanks. But in perspective If i can do SL and it dosent cost me anything , then it really is for fun , which is the whole point.

When you have a lot of money, it ceases to be fun when you lose it. Case in point: I'm sitting with L$1052k at the moment in my account. Now if I had that all invested in land (like I did a couple weeks ago) and it crashed terribly, I'd be quite angry and rightfully so, at 275L/usd, that's almost 4000usd! Land barons with *thousands* invested in SL expect exactly what people in RL expect of their investments -- profits, not catastrophic losses that may force them to leave the business...

But we all know the risk of the investment. Heck, LL coiuld shut down tommorow and we would all be out in the cold. I have been doing some research and prices are falling fast for land. 15 to 16 L per m is the norm and there are plenty lower than that.

I have about $400 US invested in land I bought at auction. I knew it wasn't a great move, but I wanted to start a business and I needed the prims. Its up for sale now and I will likely rent on a commercial island for awhile until I find that 1/4 sim for 50,000L that will be coming soon. Oh well, you live and learn.

This is going to ripple to the rental market for sure. When land becomes more affordable, there isn't nearly the demand for rental land. 25 or 40 dollars a month tier doesn't look so bad when you are paying little to buy in the first place.

I am glad that I focused my efforts on my furniture business I expect there will be alot more land being used as residential and people will generally have more prims because they will be able to buy more land.

As I watched the auctions of full sims going down I knew the prices were insane. Its a game after all and I wouldn't invest 3500 $ in anything that I couldn't touch (figuratively).

Promise?

Investing is just an another form of gambling, and everyone knows you don't gamble with money you can't afford to lose....

I certainly play by your philosophy but judging by how much a few players have pumped into the game lately, makes me wonder

Well, there's certainly a few big names who have been left holding a lot of land. Whether or not they can weather the falls and write the losses off (against the presumably large gains they made in December and early January) will remain to be seen.