Mr. John Moran:

Absolutely, I understand completely how development land value is calculated. If one is talking about a housing estate for example, the value will be calculated on what the developer thinks he will be able to get for the houses, the end value of the houses less the cost of getting him there will lead one to the residual portion of the land. I have no doubt developers made significant mistakes in that regard. They were over optimistic in their assumptions. They assumed increasing prices, which we felt were unsustainable. They assumed higher densities than we felt they could probably get and therefore they started bidding the market up accordingly. As a consequence, each time a developer bought a site, he set a new level so the price went up by another 10% and that became the next benchmark for the market to look at.