Hong Kong Is Appreciated As One Of The Freest Economy

Some things never change in Shanghai and an obsession with property is one of them. Apart from political breaks, it 's been everyone 's favorite speculation for 150 years. But recently the monster has run out of steam. Last year was very difficult for commercial and residential. Prices dropped and transaction volumes shrank. And that was before the full extent of the world economic crisis had sunk in.

-London became the most expensive city in the world instead of Hong Kong for firms to locate labors. Moreover, its house prices are going up rapidly especially in the last year the prices have been increased by 18.4 percent. Due to that London became the priciest city in the world to live and work. Due to the large amount of people who want to elaborate in United Kingdom instead of other countries like Canada. United Kingdom became the second attractive location in in the world after United States by 37 percent. This could be one of the main factors behind increasing in property prices. High demand on buying or renting houses to live, in contrast the city has shortage of houses, as a result of that prices will increase (Williams, 2015).

The upward trend in condominiums ownership by individuals is seen in the numbers: in 1971 only 5% of all condominiums were occupied by private owners, whereas in 2001 this number reached 19%. In the same year two of every three apartments formed part of a condo. In 2001 condominiums accounted for 8% of all real estate in metropolitan cities, while they were only 1% of all real estate in smaller cities or in rural areas. There was a difference between the major metropolitan centers. Almost one fifth of privately owned real estate in Vancouver in 2001 were condominiums, 70% of which were apartments. In Quebec City and Montreal this number was 80%, whereas it was 50% in such cities as Edmonton, Calgary, and Ottawa dominated by “row houses” (Canada Mortgage and Housing Corporation, 2004).

Many claim the booming as a result of “rich Chinese buyers” which is leading the housing market to a dangerous level where middle-class family will find highly arduous to afford a house.

However, even though there are a lot of people who are aware of this fact that there is a great demand for space in urban areas, the people would still choose to go to urban areas and seek greater and better opportunities in there. And there is now a high demand for houses, condominiums, and lots in urban areas right now and real estate is a big bang in London right now. With this, people are trying to find out and figure out how are they going to maximize the space in their house.

According to the article “ Instead of meddling with foreign demand, we should be freeing up urban land supply.” by Kenneth Green, Steve Lafleur and Josef Filipowicz has stated that foreign demand for property in Vancouver and Toronto has raised the prices of housing in Vancouver and Toronto, due to the is shortage in supply of new home buildings. Therefore provincial government has took measures to improve the condition by adding additional 15% property tax on foreign homebuyers in Vancouver. However, the major problem in supply is due to barriers in new home buildings and long, uncertain approval for building permits and hue amount of fees.

Toronto and Vancouver are known as one of the most multicultural cities in the world, so when immigrants are deciding cities to move to they would rather choose Toronto or Vancouver where they can find their culture, religion, and food easily rather than going to other cities. When an extensive amount of immigrants immigrate it also creates a supply and demand issue. Toronto and Vancouver compose 10% of Canada's population, with such a large population the cities don’t have enough living accommodation for the demand which forces real estate prices to increase. Another element of geography includes economical investment, Vancouver is flooded with foreign investors, especially rich Chinese businessman who are investing their fortunes in the Vancouver real estate market. It has been reported Chinese investors spent about $12.7 billion on real estate in Vancouver and own about 33% of houses in Vancouver. As the purpose of the purchase is investments the investors are not selling the houses they bought or selling them for well over what they paid for, which is reducing the number of houses on sale in the Vancouver real estate market and in turn increasing prices. This is how the metro article "Real estate window: When it's too expensive to live in Vancouver, or Toronto" shopping relates to

Today, owning huge personal investments such as a house is one of the most rewarding things for people these days, which is a part of the American dream. The sudden decrease in mortgages rates in 2001 allowed more people to purchase a house, and achieve one of their biggest dreams (Glaeser, 2010). The increase in the demand for homes caused the homebuilders to come up with many housing projects, ever in the history of America. Given the trend of the housing demand, it is already unavoidable for the prices of both lot and houses to increase. This is consistent with the price elasticity in the supply of houses, resulting to the home industry to be elastic. Since houses built are considered as ‘manufactured goods’, the housing industry can easily become elastic depending on the demand from the

George ascertains targeting incentives of property speculation would depress property prices allowing for affordable housing to be more widely available. The demand for land incorporates both value in use and value in exchange accounting for the accommodation built on it and its

The most populated country in the world is constructing cities with no one in them. Journalist refers to these cities as ghost cities. Ghost cities have a completely built out infrastructure with no one living in them. Many people in the financial world are nervously looking at China. They are building 12-24 small to large cities each year. The concept is to build now and sell later. The assumption is if you built it they will come, but no one is coming. Other city housing markets follow the supply and demand rule, but in China, the prices stay high. Kenneth Rapoza (2015) stated in the Forbes article, “Anyone can build a useless overpass, but it takes China to build a city for a million people with no buyers in sight.”

Reservation prices from a seller’s point of view is often based on sentimental value. Authors William Geotzmann and Liang Peng’s article, Review of Economics and Statistics, discusses how Housing prices are estimated in the presence of seller reservation prices. This article looks into the details behind reservation prices when it comes to items like art and homes. Reservation price is very important to the seller and shows the importance of the buyer’s need to prepare a reservation price in effort to remain focused on his or her’s home buying goals financially.

The Government of the Peoples Republic of China (PRC) in 1997 introduced a housing project with the intention of creating an opportunity for affordable housing in Hong Kong (HK). Hong Kong was recognized as having one of the most important ports in the country with a growing middle class. The project would cover a 90 block radius by 1998.

Society often falsely associates luxurious cities and poverty ridden countries as failures of affordable housing. Contrary to this belief, affordable housing has manifested itself in numerous forms. Spreading itself across world property markets from The United States and Canada to The United Kingdom, this trend has inflated house values and led to numerous consequences. Auckland is proving itself to be a notorious example of the affordable housing social problem.

This research topic is significant to the current property market in Singapore and its sudden increased demand for houses despite the economic downturn, exploring deeper as to whether the government policies were the real influential causes to this boom in property demand. It has relevance to the economic concepts of demand and supply, elasticity, inflation and monopolistic competition. This topic is worthy of investigation because it is a hot media topic in Singapore, and is widely debated in the country because it’s the most expensive household asset.[2]

China is one of the major economical players in today’s international market. China’s economy is the “seconds largest in the world after the United States” (Joseph, 63). This is a striking achievement due to fact that China is a “developing country”. China has achieved a great amount of success through the collaboration of political and economical regimes. The economical growth in China led to “one of the biggest improvements in human welfare anywhere at anytime” (Kristof, 15). Currently, China is experiencing a real-estate bubble. This eventually will hit a climax, disrupting the real-estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing