Interesting what it says about the "houses not selling as fast as we had hoped" initially, but that they are now selling "much better".
Take a look here to see why:
http://www.cardiffpointe.co.uk/#!/plotsPrices have been slashed as I long expected they would:
- 1 bedroom apartments down from £189,000ish to £150,000
- 2 bedrooms are down from something like £289,000+ to £215,000+
Over £100k has come off the houses too.
I don't know what the developers were thinking with the original prices. Even the new ones are at the top end of the Cardiff market, and the plans seem to suggest sales are still a little slow.
You have to wonder about the economics of the whole deal.
- were prices initially so high because they just misunderstood the market and thought they could rake in huge profits?
- were they that high because of the cost of subsidising sports village amenities?
- are the economics of the sports village still sound at the new lower prices?
- what if prices have to be cut even further to spur demand?
You need to question both the developers and the council economic regeneration team's assessment and judgement here.