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Bad decisions
The estate pricing fiasco is simply a bad decision. Jack's second blog mentioned sensible decisions needing to be made, however this clearly wasn't a sensible decision. However I note the second blog talked of the island setup fee and the first talked of island pricing. Are LL trying to put space between themselves and the idea of an island itself as an asset?
The talk of lower hardware prices simply does not add up, on March 7th new openspace structures were announced, if the hardware prices had dropped so much then an indication of that would surely have been contained in that announcement, however it wasn't.
As for the mainland, that's more consumer led and is always likely to rise and fall over time.
I don't think the issue is with land being too expensive, it's the ongoing tier costs that are too expensive. That's what puts people off, you can buy small parcels for the price of a couple of months tier.