This article describes the surge in the Hong Kong flat market, which they say can be attributed to the European Central Bank pumping 10.14 HK$ into the economy. Considering that Hong Kong is home to many middle to high class families it is no surprise that the effects are seen here. The article also details that these families in an attempt to get rid of the risk of holding on to something as sensitive as cash are investing it real estate around the area. This sudden interest has caused prices to go from HK$9,500 per square foot in the end of 2011 to HK$10,400 per square foot in this past March.
http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=e18db6aa24386310VgnVCM100000360a0a0aRCRD&ss=Companies+%26+Finance&s=Business
This issue relates to the idea of government and investment spending having an effect on the total GDP of the area, and thus having an effect on the GDP per capita as well. By pumping a large amount of money into the economy the government has caused an increase in investment spending from the population of Hong Kong, and thus an overall better well being for some people not to mention a higher overall GDP per capita.
This issue is interesting because it is furthering the gap between the very wealthy and the less fortunate. Not everyone can be wealthy enough to accept these climbing housing prices, which results in a deeper segregation between the upper class in Hong Kong, and those who are not able to live there. This problem could be solved by taking steps to insure that this economic stimulus is finding its way to not only the upper end of the spectrum, but also to the people who may need it more. By doing so it would allow lower class citizens to live in Hong Kong, thereby increasing diversity, and eventually leading to a more prosperous and well balanced area.
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