The Place

Hegang is a veritable small city in Heilongjiang. Generally speaking, the cost of living in small cities is not higher than that in big cities. In particular, the house price in this place is ridiculously low, only about 2,000 yuan per square meter. Tens of thousands of dollars can buy a suite.

Why is the house price in Hegang low?

The housing price in Hegang is relatively low, mainly due to the loss of population. Hegang and Heilongjiang across the sea in Russia. The climate here is very cold in winter, and the winter is very long, so there is no industry. Obviously, you can't keep people. The local house price in Hegang is very low, and tens of thousands of dollars can buy a suite. Of course, these houses are all transformed from local shanty towns, and the construction standards are relatively low. Even some houses do not issue real estate licenses, and those who intend to buy a house in Hegang must be cautious.

What happened to Hegang?

Although it is easy to buy a suite in Hegang, it is not only a house, but also food, clothing, housing and transportation. There are also emotional and psychological needs, as well as more advanced needs, such as belonging, security and self-realization. In Hegang, holiday entertainment is not enough; Days are like water, except going home from work, that is, buying food, cooking and traveling, day after day. Cities lack vitality and there are few young people. Shopping and driving are all old people. The traffic in Hegang is also very inconvenient. There is no high-speed rail, only a train. It takes a long time to go outside. I can't find a restaurant that suits my taste, let alone the food in big cities.

What is the value of Hegang?

The determinants of city value include infrastructure, culture and education. This basic element belongs to the category of public goods. From the perspective of economic theory, public goods have certain externalities, which will improve the external objective conditions of housing, enjoy good urban facilities and increase the comfort of residents. Consumers will also be willing to pay extra fees to enjoy the value brought by this public product, that is, the implied price generated by the capitalization of city value. In addition, the low income level and low investment interest in the region lead to the relatively backward development of regional infrastructure and the lack of supporting facilities such as education, health and transportation, which leads to the decline of land value.