Jimmy Geppetto
DIS Veteran
- Joined
- Sep 4, 2021
And do you want to know what sold worse then them all? VGC.
The real irony is this January is actually stronger than last and yet VGF isn’t for sale. So I still have a hard time following why the sales are ‘sluggish’.
2023 was propped up with a VGF clearance sale AND the VDH launch, with Riviera humming in the background. VDH is definitely currently quite sluggish, but it has a terrible price to match.
I know everyone wants to make it about ‘restrictions’, but Rivieria is selling well currently in the near absence of incentives. That’s the surprising data. If it doesn’t meet their objectives, deeper incentives will surely follow - and yet they aren’t so far.
VGF had a fire sale because it wasn’t selling well enough on the other hand, then hilariously I think DVD was caught off guard and didn’t expect it to go so quickly. But all the more reason price (and expectancy) really can drive demand.
I agree with you. The RIV restrictions are having a limited impact on sales IMO. Many new buyers always go in thinking "I don't plan to ever sell... ". I know I did when I first bought.
I think VGF had a fire sale simply because they had too much inventory/supply hitting the market. We all know what happens when you increase supply while demand remains constant (or even declines). I'm assuming their margins were a tad higher on the VGF flip compared to a new build like VDH or even Poly. So they were able to get the ROE they wanted even with the firesale.
Just my guess.