Saturday, April 3, 2010
Increasing price of land

What price of one piece of land these two plots should be? Expensive? Cheap?
Why the prices of land increase?

Why the prices of land increase?

Monty Python - Money Song


Yes, the world we live now is all revolving around the money.

A piece of land gets its market price as a whole, affected by all its external factors (government, public policy, environmental concern, sizes of land, etc.) In the past, it affected by the productivity on farming land, with or without productive tools and technology will both result in the increasing in the market value of land. Now that the population increase sharply, more people wanting to move to the same plot of land, competitions the land for different purpose, raising the demand of land, the price of land increases, and the one whom able to purchase with more money get the land.

Pros and cons of the increasing price of land practiced

pros-
1) Landowner gets more benefit out of the land
2) Lands will be used for better purpose, thus increase the economic

cons-
1) Young couple and singles might not be able to deal the increasing price of land
2) Widens the already high levels of inequality that exist in many poor countries

In Singapore

According to government data, Singapore´s population has grown to almost 5 million, this affect the public flats continuously increase in value as the country’s economy continues grows. Researches show on the Housing Development Board (HDB) that the Resale Price Index (RPI) has continued to climb even further, posting a record 145.2 points for the third quarter, which is 3.6 percent over the previous quarter. The property boom means HDB up graders made at least S$200,000 in profit when selling their flats, which upgrade to mass market condominiums.


Ibase (the city of Allen) is also another city where the price of land increase continuously

Due to the problem of land speculation, many plots are being held out the market in anticipation of a rise in price. It is how spectacularly on how the price had increase, as they claim that "the average price of land in São Paulo quadrupled between 1964-1978, and in Rio rose by three and three quarter times its value."


Video!!! Let’s Wendell Fitzgerald and Peter Melton discuss the history of how land comes to have a market value and the implications for the economics of land, public policy and environmental concerns with you.

Economics of land value

Enjoy~~

Resources (Increasing price of land)

http://frogandprincess.files.wordpress.com/2009/10/destination_15_singapore1.jpg
http://pottersvillage.org.uk/images/kisoro03.jpg
http://www.youtube.com/watch?v=7sNJhX0x7yI
http://www.unu.edu/unupress/unupbooks/uu23me/uu23me0d.htm
http://www.youtube.com/watch?v=HrPUK8o6ZPk

Labels: Teng I-Ling