Unit 1: Hong Kong and Market Failure

According to THIS article (click on the hyperlink Year 12!!) Hong Kong is the 9th most expensive city in the world to live in. Property prices in Hong Kong are booming - why? Well it is all down to demand and supply. China, Hong Kong's next door neighbour is growing in wealth, this increased in demand for property has increased prices, but the problem is that supply can not keep up with demand. Hong Kong is a crowded peninsula - the supply of land is limited. The videos below highlights some of the issues.

Video 1
Video 2

Overcrowding has lead to other problems, Hong Kong has been referred to as 'Hong Pong'. Pollution is a major problem: