Property is one of the many investment instruments targeted by many people from various circles. That is because many people think that this sector is resilient to crises. Even though sales are experiencing sluggishness, still the price will continue to rise. The average increase in value is between 5% to 10% per year. This is the reason developers are always competing to make good condos for residents. One property that many people see is in Parc Canberra. You can use this condominium that is under construction for personal needs, or an investment.
The question is why this sector always increases annually and even far above inflation.
Property Value Inflation
Each year the prices of products will increase, and property products such as sand, cement, and paint will also be affected. Not only that, but inflation can also have an impact on interest rates, fuel, and staples. If you continue to delay owning property, it will further burden your financial capabilities later.
Land Availability Increasingly Limited
The land supply will never increase every year. That is what caused the high price of the property. Buildings can continue to grow but not with the land, demand is always increasing every day because of more and more human growth. Parc Canberra may not be an empty area, but a renewal of buildings is a reason for those of you who want exclusive condominiums.
Continuing Increase in Population
If the land cannot be increased, the opposite is true with humans, which is increasing every day. The development of the population is always large so that they need a place to live to shelter. This is called the imbalance between land availability and community demand.
So after looking in the mirror above, don’t be surprised if in a short time property prices can soar. The increase in population has become an international issue or in every country. Swelling of the total human population on earth is not accompanied by an expansion of land to make property prices “forced” continue to rise from year to year.
Building Material Prices Increase
As previously explained that inflation will affect the price of building materials every year. The price of building materials has been increasing since the beginning of the year. This certainly can make worry because the burden of real estate development costs will increase. The increase in commodity prices for concrete iron, nails, nuts, ordinary iron, aluminum, wire, bolts, and other types will greatly affect building costs. This will be worsened if the prices of cement and similar materials also increase.