[quote=barnaby33]Do mean that Vantage point is solely, or even mostly responsible for a glut of units for sale? That doesn’t seem to be a realistic statement, because buyers there would seemingly be very different than buyers at BOSA or something more westerly.[/quote]
That is true but what it does as competing sales inventory is to present an option of many, many units that have to be moved.
If you have 700 units selling at VP, they will likely do some discounting to get them moved. If you have discounted units there, then that will pull buyers away from properties that are priced lower. The logic there is that one would rather pay x+10% for a new property versus paying x for a used home as a resale.
So it will command higher prices from the same buyers.
That will impact prices up and down the tier ladder.
Let’s take some examples from actual projects.
It is easy to see how Vantage Pointe could pull buyers from Acqua Vista. If you do that, you can lower all values in Acqua Vista.
This actually happened a while back and it meant that only cash buyers were able to buy there.
That can crater prices.
If you drop prices on 2,000 sqft AV penthouses, at a certain point that will have an effect on Bosa and the Grande (if for no other reason that the kind of people who can afford a $6M penthouse didn’t get rich by overspending stupidly).
So its not as cut and dry as cheap-studios-off-163-drop-prices-in-Renaissance.
However, it does have a persistent ambient effect.
Too much inventory and too much distress takes its toll.
Back on the non-hypothetical planet earth, it was intelligent to not put all those units into the sale pool. It would have tripled the inventory.
As it is, it still added a large percentage of housing inventory without directly adding it to the list of potentials for buyers.
Even by offering them as rentals, doing so, reduced the scarcity (and thus the burden) for residing in downtown.
And that has an effect.
