Housing prices are mostly supply and demand driven, but it's the supply and demand of location, not of the building itself.
Next to that, the maximum price is largely defined by how much people can and are willing to borrow with a typical income for the location and the type of building.
And with location being in short supply, locations (and houses) go for maximum price. With rent going up, maximum price will come down, to keep total price the same.
Next to that, the maximum price is largely defined by how much people can and are willing to borrow with a typical income for the location and the type of building.
And with location being in short supply, locations (and houses) go for maximum price. With rent going up, maximum price will come down, to keep total price the same.