Linden freezes land supply as prices plummet
By Eric Reuters
Average prices on Second Life’s volatile real estate market have fallen from L$11.5 per meter to under L$6 per meter in less than three months. To help shore up the market, Linden announced it was instituting a two-week freeze on additions to Second Life’s land supply.
The drop in land prices should come as no surprise to virtual land speculators. In April, Linden announced its plans to deliberately depress the price of land by increasing supply. The latest tweak to the production schedule at Linden’s land factory suggests the company overshot the mark.
While Second Life’s real estate business resembles a free market in many ways, including fluctuating prices and a diverse pool of buyers and sellers, Linden Lab’s monopolistic ability to introduce new land allows the company to essentially set prices. In an interview with Reuters last year, Linden executives indicated their preference that average land prices in Second Life hover around L$8-L$9 per meter.
