Developers vs Re-sellers or Flippers

Developers have felt a slowdown recently, but this has been enhanced by re-sellers or flippers putting the units they bought from the developer, back on the market. They bought as an investment, not to actually live in. This makes it difficult for the developer as they are now competing against him, inside his own development! And this is where the profit usually is for the developer, in the last remaining units. So he is delayed in receiving his payout for the development.
But its not going to be easy for the re-sellers either. They have to deal with capital gains taxes, and they can’t deliver the unit with the guarantee that the developer gave. And developers are now starting to give incentives, (a car for one project!), which makes it more difficult for them.
And for the market, these were sales that we actually thought were “sold”, but they aren’t, which increases the overall size of our market again. Question is, how many of the units that have been sold at some of the larger projects, are actually “sold”, or are units that are going to come back on the market shortly and compete with the developer? How many units does this add up to?


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