By Property Soul (guest contributor)

Have you ever wondered why new projects from developers are able to command a large premium in asking price, sometimes up to fifty percent higher than recently completed nearby projects?

An interview with a VIP property buyer

Below is an abstract from my interview with a VIP property buyer (as compared to the usual retail buyers).

Me: How do you manage to buy before everyone else does?

VIP: After developers set the prices, easily twenty to forty percent higher than nearby projects, they need to test the water. They will invite us to a project preview where we can pick our preferred units. Whatever price we are willing to pay, the developers can use it to convince the market that it is a reasonable market price.

Me: How do you make a profit?

VIP: Say, if we buy at $1,000 per square foot, developers can ...