Housing Prices Remain High Despite Economic Downturn Due to Limited Supply and Focus on High-End Units Rather Than Affordability
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Housing prices have not fallen as expected during the economic downturn, unlike in 2008-2009 when prices dropped dramatically. Prices are steady or even rising in some areas.
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New housing supply has been extremely limited for 2-3 years, allowing developers to maintain high prices. Most new projects are high-end, leaving a shortage of affordable options.
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Developers are catering more to investors rather than owner-occupiers now. Even if businesses suffer losses, they cannot cut prices due to impact on customers and credibility.
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Legal disputes have driven up housing construction costs, making it difficult for developers to reduce prices even if willing to accept lower profits.
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Experts recommend measures like developers lowering profit margins, offering more discounts/promotions, focusing on affordable segment, and adjusting prices to match buyers' incomes.