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60 Billionaires In China & Real Estate

Discussion in 'General Business' started by Omote, Sep 20, 2019.

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  1. Omote

    Omote New Member

    According to Forbes, over 60 Billionaires in China that made their money in Real Estate in 2018. Who would be the real estate billionaires in Nigeria? Thread:

    Back to fundamental economic principles. What drives the price of a good or service high? It's what we all know as demand and supply. The higher the demand, the higher the price (assuming the supply remains constant or doesn't keep up with the demand). So when there's a higher demand for housing, the owners of the properties are the ones that would benefit from it - higher prices they can charge for rent, higher prices they can charge if they want to sell.

    Consequently, when there's a large supply of housing, and not enough demand, the owners would suffer from low demand which could lead to losses. Let's take a look at what drives demand for real estate. Jobs: People with jobs have money to spend on the basic necessities of life. Housing is one of the basics. People would either rent or buy a property to live in. 2 options only.

    According to the National Bureau of Statistics, China added 375 million jobs between 1978 to 2017. An increase in the number of jobs, the more money people would have to spend to rent or buy real estate to live in. Automatically, the owners of properties in the areas where these jobs are being created are the ones that get paid from charging higher rents, or selling their properties for much higher profits.

    1. Economic Growth: Closely tied to jobs is economic growth. China recorded an average annual growth of around 9.5 percent over the past 40 years. When the economy grows, businesses are started, jobs are created, people have money to spend to either rent or buy real estate, and with more money available to be spent, the owners of real estate in the high demand areas end up being the beneficiaries.

    2. Population Growth: An increase in population means an increase in the need for housing for people. Which means a higher demand for housing (again, if the supply is constant, or not keeping up with the demand, then prices increase). China has an annual growth rate of 0.58% per annum, and 17.23 million people are born in China every year.

    If you have a place for these people and their families to live in, they can and will contribute to your wealth.These are some of the most basic factors that have helped create at least 60 real estate Billionaires in China. How many people would replicate this in Nigeria?

    Email: contact@realtor.ng

    Website: www.realtor.ng
     

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