Does land prices go down?

Question

In my country (jordan) every body have excess money invest in land property, every body thinks that land prices don't go down, i want to ask if this happens in your countery also or like stock market the land prices can fall down as it's part of economy?

Answer 1

In my country where I live in Indiana farm land dropped considerably in price in the early 1980s. Land was going in many cases for under $2000 an acre about 4800 sq meters a drop in price of about 30%. It has since recovered. But in Japan there was a terrible drop in land prices during the late 1990s. Land dropped by 70% and more. There was a speculative land bubble there during the 1980s when prices increased a lot. Then the bubble burst.

Answer 2

Land can go down. If for some reason (natural disaster, crime rate rising, war) nobody wants to live, work or build in that location any more, the price will plummet. BArring any of these, land prices tend to be sticky. Speacially residential property. Given the high expense of trading land (taxes, legal fees, real estate commissions), people tend not to sell into a reversing market. SO its esier for land to go up, than down. Then again if land does not apreciate, the real inflation-adjusted value of the property, does drop. Long term, it should go up most of the times,though.

Answer 3

The fact is there is no new land. So as population increases so will the price and value of land. Even swamp land or deserts have value. Only when the economy goes into a total collapse will land prices reduce, only to have it purchased by smart people seeing the opportunity to buy at lower prices.

Answer 4

Yes. Land prices can decrease. The biggest risk with land or real estate is that you can't get out of the investment easily. It's not liquid.

But you can make money if the land goes up in value. Good Luck.

Answer 5

Land is an asset and its cost is determined by grant and demand except for the way worthwhile it truly is interior the longer time period. Even the worst land you may ever discover is sensible for some porpose, so expenditures of the land don´t replace all of unexpected. some wealthy human beings may promote his or her piece of land to pay debts yet maximum to blame farmers or farm animals vendors save their ranchs and lands as an coverage and they do no longer risk common and organic thoughts of life. after we manage agricultural concerns we received't use city understanding on economics because agriculture is a market that has an importance by itself. I mean that expenditures and parts are provided and demanded interior a closed subarray of a non aggressive Leontieff matrix. often times this subarray is opened at the same time as maximum farmers are waiting to promote a severe share of the crop to the city centers. In different cases, this subarray is closed and exterior activities seen a risk to the organic market. Then, the answer is that expenditures for homes and different equipment matter on what sort of market we´re coping with and how that markets change inner products and combine new products. Don´t ignore, new channels of distribution, new agencies, new technologies, new labour rigidity and so on. If the market isn't integrated, differences and adjustments are unusual. If the market you´re talking about is integrated, expenditures will replace as in case you've been interior the city.

Answer 6

Land prices can go down as they also follow cycles. Land prices crashed in Japan, USA and other countries on more than one occasion. However you need to track the economy closely to understand the phenomena.

Answer 7

yes some time when war begun or when the government occupies for any purpose

Answer 8

To answer simply, YES.