I’d like to talk a little about land supply for the upcoming period, and also to address the many of you that have asked us whether land pricing changes are coming soon. A year ago, in November 2006, we stated that prices would not change before end of 2007 and so with 2008 fast approaching it is a good time to discuss it.
Firstly, regarding pricing.. our current plan is to keep land prices as they are now through Q1 2008, both for new and existing land, for islands and mainland. Grandfathered islands will also remain the same. So no changes to land pricing in Q1 2008.
Regarding land supply.. the average mainland price per meter has continued to hold at around L$6.3/m, which we feel is a good level, low enough for those coming into the land market for the first time and high enough that both mainland and islands can be profitable for those interested in trading or leasing land.
So with that in mind, we will continue to keep the level of new land we add to the market low, essentially concentrating on recycling abandoned land back into circulation. There will be no whole regions of mainland auctioned in the remaining weeks of 2007. In January 2008 we may begin to auction whole regions once more.
Over the last few weeks we have pushed the amount of abandoned land on the mainland down to around 1 million meters; that probably still sounds like a lot, but in reality it’s the equivalent of less than 16 regions of land or under 0.4% of the total mainland space. We want to keep pushing hard on getting as much of this abandoned land back into use and generally cleaned up, so expect to see more L$ auctions being posted to the auction pages through January.