Exactly.You are right, Developers will factor in all cost 5% or 10% doesn’t matter. After cost + 20% or 30% profit margin- that’s the selling price to buyers. What matters most will the buyers gonna bite and enrich the developers who overpaid or crazy bid for the land price? Developers never gonna make a loss, so if there is a loss, it will passed to the buyers. Any buyers willingly to help buffer developers loss?
Imagine you are a food supplier. Your cost of imports is high, so you have to sell higher to make a profit. Because cannot lose money mah. Of course sell higher, "no choice" right?
But the fundamental problem (which a lot of agents ignored) is are buyers willing to buy at that high price? All are so focused only on the developer side. Supply and demand are both at work, but why focus only on the supply? It's obviously fomo tactics.
Of course, then all the tricks come to market and sell the properties to increase demand, including some "transformation story" and next launch will be higher price.
Paying a higher price is never an issue if it is a fair price. Paying an overpriced amount is the issue.
Agents job is to sell and advise based on their knowledge, nothing wrong. Buyers job is to have our own analysis and judgment.