An increase in sale price, however little, has significant impact on sales since the buyer profile for this market cannot afford it. With the expected obvious cost and time overruns and the unavailable luxury of price adjustments, most developers find it tricky to enter the murky territory of low cost housing development. The low cost market is essentially a buyers’ market even though this trend is rapidly shifting to middle and a high tier market. A developer must work their feasibility backward from the set sale price unlike in other markets where the project cost guides the developer on the sale price. Capping of interest rates in the last quarter of 2016 has negatively impacted on the construction industry, especially the lower cost market.

Source: Standard Digital October 22, 2017 11:15 UTC