• Property

When a developer buys a piece of land and their gross development value (GDV) is around 10 times of the land price, the price they want to sell will be adjusted based on the size, the number of units, the type of properties etc. The bigger units they build, the fewer units will be built and the more expensive the units would be. The smaller the unit size, then more units could be built and in fact the prices tend to be lower because the GDV is now divided by a larger number of units. Let me explain.