Land For Sale In Las Vegas! Or was that….Dubai: Trends in Land and Real Estate
Many times, stories and trends about things we discuss in contemporary society are seen through a very “homebase-centric” lens. Things like, “land value” and “the average price per acre” on this, or the “loan terms” on that, are thought of in terms of “our state” or “our municipality”, “county”, whatever.
Market trends might very well have been regional in past years, but in the modern day, with the way information and knowledge can spread worldwide with just the click of a mouse, market trends are starting to impact globally.
One typically wouldn’t think of a similar trend occurring in, say a city in China and a city development project in Ireland….yet according to one analyst, who hosts a blog called “The Housing Bubble Blog”, these exact trends are happening! An excerpt from a local Irish publication states, “Up to 200 ghost estates around Ireland may be demolished under new plans by the Housing Minister. The Evening Herald reports there are around 1,100 unfinished developments around the country.” Simultaneously, The Economic Observer from China, reports: “For various reasons, many of Wenjiang’s homes remain empty. In 2008, 29-year-old Zhang Chenguang noticed housing prices were relatively low in Wenjiang, he decided to endure the long commute to work every day and buy a 90-square-meter apartment there. After five years, Zhang certainly isn’t in want of peace and quiet. ‘Even during holidays you hardly see any people on the residential block,’ he said. ‘Only one-third of the apartments have lights on at night.’”
Yet similar stories from similar hosts in un-similar areas abound. Whether it is a story of “the average price of land for sale in Phoenix, Arizona” or “The Current Real Estate Trends Occuring in Macau”; parallels can be drawn. Here in Phoenix, we have recently witnessed a trend where investors from Canada have been buying land locally, taking advantage of International differences in interest rate and ROI’s. Says a local official in Macau, Mr. Chui, at the same juncture, “...more residents planned to buy homes as investment vehicles against inflation and make(ing) use of low interest rates.”
From The Emirate, Arab Business Reports: “This has led to concerns that Dubai could be entering into a new real estate bubble, similar to the one whose bursting in 2008 led to a collapse in prices of up to 60 percent. “ Back to China, The Economic Review touts, “China has become addicted to debt to fuel growth. More than half of China’s total debt was added in the past four years, the bulk of which came from shadow banking and bonds. The country’s debt level sits at roughly 205% of GDP as of 2012.”
Trends, and the global mentality. Certainly, due to its recentness, this Phenomena must be vastly understudied. That said, I’d be willing to bet in the next few years we see a global push to some sort of standardization effort to avoid another backbreaking economic crisis.
When next considering the purchase of a home, or when chewing on the idea of buying an acre of land, think of the idea that someone from New Zealand might be using the same metrics you are to make their investment decision. When your house gets underwater, someone in Melbourne just threw a pan at the wall, sharing your frustration.
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