We’re halfway the Road to Secondary Land Offering (Road to SLO), so it is time to look back and look ahead. How has the experience been thus far? And what do we expect for the weeks to come, starting with week 6, which kicks off this Thursday?
The idea behind Road to SLO is to allow people to purchase parcels directly from Somnium Space (via OpenSea) and not be dependent on the secondary market (owners selling their parcels, also on OpenSea). Mind you, Somnium Space still has plenty of parcels to sell (think multiple thousands) and the plan is that they will be sold during the Secondary Land Offering (SLO), which is expected to happen later this year. The Initial Land Offering (ILO) happened in October last year.
Now, to give everyone a chance to buy parcels already now, Somnium opted for a Road to SLO campaign during which they sell 25 (or more) parcels each week for 10 consecutive weeks. Then, at the end of the 10 week period, they will announce when the Secondary Land Offering will take place.
The first 5 weeks
It sounded like a great idea from the onset and the first 5 weeks have shown that the interest in Somnium Space land is nothing less than sensational. Week after week records were broken. The culmination was week 5 (last week) when the total amount spent landed on more than 261 ETH (USD 45.000) which is 7.5 ETH on average per parcel.
Think about that for a moment. During the ILO a small parcel sold for like 0.3 ETH. During week 5 they sold for 2.2 ETH on average. That’s a 700% increase. M(edium) and XL(arge) parcels have seen the same increases. During week 5 a 10 XL Estate was sold for 145 ETH (USD 25.000), which means an average of 14.5 ETH per XL parcel.
Actually, an XL island parcel sold for more than 31 ETH recently (not part of Road to SLO).
What is going on?
How come that the prices for virtual land are skyrocketing?
Land in Somnium is scarce. A total of 5000 parcels exist. The majority is still in the hands of Somnium Space and will hit the market during the SLO. The rule of scarcity certainly applies, but it goes hand in hand with the perceived value for (prospective) buyers.
And they see great potential in this persistent, blockchain based VR world. It’s a space that allows them to unleash their creativity, to socialize, share, play games and do business. The latter is not theory. Creative Somnium Space members are already opening businesses and earning money as we speak.
Apart from that, immersing yourself in Somnium Space is an insanely real experience. By putting on your VR headset you enter a different world. In VR, granted, but real nonetheless. Somnium Space is a continuous world, which means you can hike for hours, climb mountains, watch sunsets, swim, build your dream house on the shores of a giant lake. It’s as good as it sounds and is getting even better in the months and years to come.
Can I still find good deals?
The answer is yes. Waterfront parcels are mostly sold out. They’re still being offered on the secondary market, but they are priced relatively high – we’re not saying too high – compared to parcels that are more inland. The general rule is that the further away a parcel is from the waterfront and city center, the cheaper they are.
And there’s plenty of land left. Your next opportunity will be week 6 of Road to SLO, which kicks off on April 23rd. After that 4 more weeks of Road to SLO will follow.
And after Road to SLO, we’ll have the much anticipated Secondary Land Offering (SLO).
We expect to see the same pattern for the remainder of Road to SLO. All parcels will be sold. For prices that we have seen during the first 5 weeks. Or more. That’s far from unlikely.
See you in Somnium!