Is LL afraid of thier own land glut?

With LL close to putting in an entire new continent soon, people have grumbled about a land glut some (Even more with the gambling ban) but it almost looks like LL is also afraid of the glut they might cause.

They just raised the starting bid for the sims from $1000 to $1250. So even if every sim sells without bidding (Well ONE bid) they basically make back the average price for the sim that they would have expected before. (The price before they realized that they could raise prices because "buisnesses could afford it" to $1695)

Hmmmm

As long as land brokers exist with tier to burn, there will be no land glut. LL is smart enough not to release too many sims at once. $1250 is ok, but $2,250+ is better.

I think they just raised the starting price because no sim has sold for that low in the last year or so and they are just saving bidders from wasting their time and energy early in an auction.

Besides it does not really matter, all full parcels sold for over $2200 USD each during the last round of auctions.

Pricewise full Mainland sims are a bargin compared to private islands, estate controls not withstanding.

Not entirely sure mainland sims are a bargain at the current auction prices. Lets work with a price of US$2200 which is around the lowest they go for at auction.

Overall cost of a mainland sim over 8 months =

US$2200 initial fee = US$2200
8 Months at US$195 = US$1560
Total: = US$3760

Now cost of an island over the same 8 months

US1675 initial fee = US$1675
1st month included = US$ 0
Months 2-8 at US$295 = US$2065
Total = US$3740


8 months is about the break even point at which a private island will cost more overall - assuming that you haven't cashed out by then and SL prices haven't changed: 8 months can be a long time in SL.

Of course mainland sims have been going for more than US$2200 - even into the US$3000 at which point the break even point is over a year!

That's assuming you are buying to keep (use/rent whatever) rather than sell off - but even there the returns are diminishing - at US$2200 plus the US195 you'll have to pay in tier (assuming you sell all the land within a month), you are actually paying L$9.5 per sqm which is above the current market rate!

Matthew

Its called Greed .....

why ANYONE will pay above the going sqm rate is beyond me as its not likely you can sell it off... so we carry on with land going for silly prices.

Ive seen a plot unsold for 7 months becasue they want 20k for 800sqm

Allthough I know of one person who paid 10k for a 32sqm becasue it was stuck in the middle

yes, Marty, but 9 month ago 20$l per meter was not unheard of, even common.

Land prices are still falling ever so slowly, but I lost my shirt during the crash a few month ago.


Mat, I Plan to keep my mainland sims, well beyond the 8 month break even, so for me definetly cheaper.

First answer I've bought for why they did that...

Even with a ton of sims in auction, the first of this big dump are going for the typical prices they've been going for lately. Time will tell if we will run out of brokers with tier before the weekend's over and the sims are all bought.

Anvil (128,12 Mature 65488m US$2652.00 Aug-02-07
Eldfell (128,12 PG 65536m US$2456.00 Aug-02-07
Beerburrum (128,12 Mature 65056m US$2604.00 Aug-02-07
Katla (128,12 Mature 65536m US$2672.00 Aug-02-07

no it's called eliminating junk bids. the prices for the sims are still above 2250, by raising you you're just reducing the pain of the number of lower bids.