I am applying the same reasoning the GGP post applies: the high price indicates desirability of dense accommodations. And I am explaining the GP's critique of this model.
I feel like there's some disagreement somewhere that's preventing reconciliation of what's going on here.
Does density imply micro-apartments? What's a micro-apartment? What's considered dense development?
Are we looking at this through a macroeconomic model or a microeconomic model? If microeconomic, have we accounted for everything that confounds consumer choice and consumer demand?
Given strict regulations on land use—the status quo today—is it reasonable to assume that mansions or villas within the city limits will be granted permits for denser development, whether that means interior renovations to convert them into multi-unit dwellings or razing the building and starting anew?
Does density imply micro-apartments? What's a micro-apartment? What's considered dense development?
Are we looking at this through a macroeconomic model or a microeconomic model? If microeconomic, have we accounted for everything that confounds consumer choice and consumer demand?
Given strict regulations on land use—the status quo today—is it reasonable to assume that mansions or villas within the city limits will be granted permits for denser development, whether that means interior renovations to convert them into multi-unit dwellings or razing the building and starting anew?
The analyses so far plainly seem too simple.