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yeah thats because the building was centrally planned, which is always a worse choice than just allowing the market to work itself out. It doesnt detract from t
by anthonypasq 3y ago
yeah thats because the building was centrally planned, which is always a worse choice than just allowing the market to work itself out. It doesnt detract from the mind numbingly obvious statement that increasing supply decreases prices.
- prewett 3y agoIncreasing supply doesn't necessarily decrease prices. Increasing supply above demand is required for prices to decrease. Unrelated to the above, but China's excessive building isn't actually from central planning, but because real estate is the one of the only viable investment methods in China, and because selling land to developers is one of the only ways local governments can raise revenue. Chinese cities are quite expensive to live in (especially if you have Western standards)
- somewhereoutth 3y ago> mind numbingly obvious statement that increasing supply decreases prices Only in idealised markets. Housing markets are often not like that.
- anthonypasq 3y agocan you explain how and when this wasnt the case barring regulatory interference?