Asset price increase?

How does an asset increase in price? If the needed resources will cost more to build the asset, its price will increase. Consider a 10-year life asset. In one year, only 10% of the existing assets will be built but all of the 100% assets will increase in price in anticipation of the future cost of replacing the assets. This is fine except that an asset could be sold today to raise cash from the increasing asset value. In cases of immovable assets like land, its price will increase if the economic activity supported by the land increases in value. If I can sell 10 times more items from a specific location than I did 10 years back, the value of the land will also increase to reflect the increased economic activity. In my next blog post, I will try to analyse credit from a fundamental point of view - let's see how much traction I will get on it. Asset price increase is closely related to credit availaibility as well and is worth analysing it.