December 2020

House prices skyrocketing around the world

House prices around the world has increased compared to the olden days, in the 20th century. Some countries even more than others. Places like Munich, Singapore and Hong Kong has some of the most expensive housing markets across the world and not only are they expensive, they are very small as well because they have to compensate for the lack of land available in the country which is the reason why many of the houses are high-rise apartments. Nowadays more and more people are unable to afford to buy a house because despite the increase in house pricing, the wages or salary of the people stays the same. Eventually less and less people would be able to afford a house and they would have to settle on renting for their whole life. Even in Malaysia, house prices are definitely increasing. It is evident at places like Bandar Utama, Ampang Hilir and Mont Kiara, Mutiara Damansara where even a studio apartment can cause up to RM600,000. It is really hard for an average working class to afford the house with that price and surely people would want to buy a bigger place than just a studio apartment. Here are three reasons as to why houses cost so much nowadays:

1 – Population 

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Compared to the time before, the population across the world are increasing steadily. With the advanced medical discovery and supplies, the mortality rate is decreasing and more people are procreating. As more people are producing offspring and lesser people are dying, it is inevitable that the population would increase as time passes. People are also more aware of health now and the way to take care of your body to maintain healthy lifestyle. As the knowledge on diseases expands, doctors would be more informed on the details about particular diseases and how to treat them. People would get the necessary treatment for their disease which would then decrease the number of people that died due to unknown diseases. Also, the number of methods for fertility treatment has increased along with the advanced medical discovery. Couples that suffers from infertility can get fertility treatment in any hospital so that they can conceive. Although infertility rate has increased, due to the vast methods of fertility treatment, getting pregnant is not really an issue nowadays, only the financial capability of a couple and because of that, in many developed countries, more and more babies are being born every year. Thus, with the number of babies being born increasing while the number of people dying are lesser, the population would fluctuate according to the statistics which then result in higher prices of housing because more and more people need a house. If you would like to read on people are recommended to paint their house before selling, click here.

2 – Education

In the current generation, people have the means for higher education and they can afford it as well. Many people around the world are able to attend tertiary education because there are opportunities to do it and they can afford it, either through self-expense, loan or scholarship. The government also encourages the people to go for, at least, tertiary education and emphasis on the importance of education. As more and more people choose a higher education, they opt for jobs that are equivalent to their achievements and when that happens, less and less people would be working in the physical labour industry which does not pay that well. Thus, there are shrinking of sectors like the construction sector which helps build houses so it is inevitable that the houses prices would increase.

3 – Scarcity

As mentioned above, as the construction sector starts to shrink, there are less people that would build houses and because of that, there is scarcity in the number of houses compared to the number of people that needs a house. Which is why many people now cannot afford to buy a house with a land and settle for an apartment. This is worse when someone lives in a city because it is more packed with little land to build land houses. This situation would get more worse in the upcoming years as the population keeps increases until it comes to a point where the younger generations can no longer experience the nature because of the tall building surrounding their landscape. Their lives would become detached from nature and they would grow closer to materialism. This would not be something that would reflect greatly on everyone because once we die, we cannot bring any worldly possessions with us.