That should kill the 2nd hand McMansion market as the largest cost of self-building was the ridiculous price for sites. Why pay 300k for a 2nd hand 200 sqm McMansion, when you can now build one yourself for 200k with as many doric columns as taste demands on a site that you’ll only pay 50k for? Or 40k? Or 20k?
2nd hand McMansions will rapidly decline below build cost + current land cost. major NE hole for anyone who needs to bail out.
In many areas, they’re likely to fall below build costs (full stop!), even more so if any future property tax factors in floor space.
Development sites, at the end of the day, were just a hyper leveraged bet on property prices. Once apartments start selling for small premiums over construction costs, the land itself will have almost no value