In the U.S., there’s public expense at every stage of projects like this. First, there are lending incentives and tax breaks given to the developer, who needs financial help to be successful (despite already having plenty of funds from previous projects). Initial buyers often get tax breaks, too, which may be temporary so that the second buyer gets hit with a large bill after the abatement expires. In the meantime, the entire community pays more because the wealthy initial buyers aren’t contributing to the pool used for community services, schools, etc… If units go unsold, the developer is probably claiming that as a loss on business tax filings. If anyone sues over the taxes, assessed value of the property, or the condemnation process, court costs are added to the total. Finally, the owners might decide to declare bankruptcy or hide, which adds to the costs and time involved for the municipality to find them:
Majority of London's newly built luxury flats are unsold, raising the spectre of "posh ghost towers"
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