Site values and development activity

Abstract

One conclusion already reached is that because existing stock dominates the property market, it is mainly the demand and supply of existing property which determines price at any point in time. It is principally prices fixed in this ‘secondary’ market which influences the supply of new developments, rather than new supply determining price. It has therefore been logical to embark on our quest to explain the price of property by emphasising the market in existing property. However, the supply of new property must also affect price, so it is to the development sector of the property market that we must now turn our attention.