| Comment | It can sometimes be more valuable to simply sit on land and watch its price inflate over years or even decades. If the parcel of land is bundled into part of a pension or hedge fund for example, it may make more financial sense to leave it empty rather than build on it. By building on it (whether with housing or retail or whatever) you lock in the value so to speak at that point in time. It becomes housing, and so loses a huge chunk of sell-on value. The owners then miss out on future price speculation on the value of the asset (the parcel of as yet unused land). |
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