From: "Troy Steadman" 
Newsgroups: uk.finance
Subject: Re: Development Land values plunge in SW London...
Date: 12 Jul 2006 00:11:06 -0700
   posting-account=R7WSowwAAAD53T0SHAPLFrX9g546w2I8

Tumbleweed wrote:
> "Troy Steadman"  wrote in message
> news:1152624496.640251.293420@b28g2000cwb.googlegroups.com...
> Colin Forrester wrote:
> > Troy Steadman wrote:
> >
> > >> However how does the subject line square with your post?
> > >
> > > Because there is now an inverse economy of scale - the bigger your
> > > development plot the *less* it is worth. You can't split it into
> > > smaller chunks. No one will buy it except a Housing Association. Less
> > > is more.
> >
> > So how much have they plunged, since say this time last year?
>
> At least 50%. I live next door to a factory. A couple of years ago they
> were offered =A31.6m to demolish part of it and build 14 flats. Today
> the best offer for the *whole* factory is =A3800k.
>
> =3D=3D=3D=3D=3D=3D=3D=3D
>
> Seems like a deal. Was 114k per unit (1.6M /14) now its 89k per
> unit(0.8M/9).
>
> Also, since the units will be bigger you can sell them for more.

Doesn't work like that:

"4.2 The best use must be made of development sites...The Council will
look closely at proposals that fall short of providing 10 or units to
make sure the best use of land is achieved..."