Economics CPD Courses in June 2014

Economics CPD Courses in June 2014 - Book Your Places Now!

ETNC 2014   | New to AS & A2 Economics | WOW! Economics 2014


Economics Resources Popular resources on the {my channel} blogPopular resources on the {my channel} blog Economics revision quizzes Resource tags for the blog RSS Feed for the blog Twitter feed for this blog Teacher Email Resource Newsletter Category listing for this blog Economics Blog home page Economics Blog Home Page


Tracker Pixel for Entry

Chinese inward investment in the London property market

Sunday, June 12, 2011
Print Tweet This!Save to Favorites

In mainland China, authorities have put restrictions on property speculators to dampen the market, while in Hong Kong prices have risen by 70% in less than two years. But the 25% depreciation of sterling over the last two years makes the London property market a real draw for property investors from China. Sky News reports that one in three of buyers of new properties in London come from China and Hong Kong, mainly in the £400,000 - £1mn bracket, either seeking accommodation for their children studying in London or simply an investment. If - or when - the sterling/dollar exchange rate recovers, their return will be enhanced by the increased return they could get when they take their money out of the UK market again.

The London market may offer better value for money than Beijing, Shanghai or Hong Kong - but the knock-on effect of the market mechanism could be to raise prices in our capital to a rate that is increasingly beyond the reach of UK residents. The Housing Association has forecast that many young Londoners will have to wait until they are in their 50s to be able to afford a deposit. Assistant Director, Paul Rees said: “In effect we simply don’t have enough homes to go around. As a result of that, 800,000 people are on a waiting list for an affordable home and the average house price in London is thirteen times the average salary.”

So this report links to aspects of simple analysis of the price mechanism, impacts of exchange rates and the balance of payments, inequality between regions in the UK, the desirability of inward investment to the property market (good for builders, estate agents, and furniture sellers; bad for local residents who are priced out of the market and have to move further away from their work place thus incurring longer and more expensive journeys to work….etc) - and also tells us something about the extraordinary income gap in China, where the World Bank estimated in 2009 that about 15 million of the rural population were still existing in poverty, and the National Bureau of Statistics measured urban per capita net income at 17,175 yuan ($2,525) - and yet enough people can afford to educate their children in the UK and to invest in property in London to shift the demand curve for the housing market.



 

FOR MORE REVISION SUPPORT FROM THE TUTOR2U TEAM...

Follow the tutor2u team and all our subject blogs on Twitter

Register for free tutor2u revision classes at our sister site Zondle:

Use the following class codes to join our Zondle revision classes:

Economics: AS Micro 290-66327 AS Macro 290-66328 A2 Micro 290-66329 A2 Macro 290-66330

AQA AS/A2 Business: BUSS1 290-66325 BUSS2 290-66326 BUSS3 290-66323 BUSS4 290-66322

 



Economics CPD Courses in June 2014

Economics CPD Courses in June 2014 - Book Your Places Now!

ETNC 2014   | New to AS & A2 Economics | WOW! Economics 2014


tutor2u online store

PowerPoint Lesson Activities Teacher Conferences & CPD Courses
Exam Coaching & Revision Workshops Pre-release Case Study Toolkits
A Level Economics Teaching Support Resources for Business Studies
Digital Magazines  


Enter your Email


RES Economics Essay Competition 2014

Submit your entry to the RES Economics Essay Competition 2014

WOW! Economics 2014

50+ New Teaching & Learning Resources for A Level & IB Economics

AS, A2 & IB Economics Revision Notes

Latest resources

Resource categories Blog RSS feed Blog RSS Feed

© Copyright Tutor2u Limited 2013 All Rights Reserved