Repulse Bay Villa

in the living room

Yang Chen was talking to Li Guowei, who had returned from the island country. Since Li Guowei became the president of Real Estate, he followed Yang Chen's instructions and went to the island country for inspection.

During this inspection, Li Guowei finally understood why Yang Chen wanted to invest in the real estate industry of the island country.

According to Li Guowei's guess, he obviously thought that Yang Chen was prepared to stop taking the wrong path after establishing the Yang Family Group. A series of decisions made by Yang Chen before had resulted in huge benefits in the end.

However, benefits and risks coexist. The greater the benefits, the greater the risks.

Now Yang Chen is already the richest man in China and the richest man in Asia. There is no second richer person in Asia than him, so Li Guowei thinks that his boss has begun to give up and no longer pursues high-risk investments.

As a financial and banking professional, Li Guowei always prefers to speak based on data. In Li Guowei's view, data is the basis that best reflects the economic development of an enterprise and a country.

In the island country’s real estate industry, based on the current data, there is still a lot of room for appreciation, although the island country’s government has long been implementing policies to curb the excessive growth of real estate.

However, the measures introduced in relation to real estate cannot effectively control the rising trend of housing prices in the island country.

Bankers have always preferred to pursue long-term interests. As long as any industry can bring long-term stable returns, the banking industry will prefer this industry.

Based on his observation of the real estate data of the island country, the people of the island country are no less paranoid about housing than the people of Hong Kong.

As we all know, island countries are countries with many people and little land. Their land resources are very tight. In addition to housing, in order to alleviate their own agricultural gaps, island countries are very strict in the use of land resources.

After the end of World War II, for a long time, people in the island nation have believed in the myth that land prices can only rise but never fall.

House prices only rise rather than fall. This is the result of statistics on the development of the real estate industry in the island country since the end of World War II.

The real estate industry in the island country is far more stable than the real estate industry in Hong Kong. Xiangjiang basically reincarnates every ten years on average. After a high rise, there will be a crash. After the crash, it will continue to rise, going back and forth, torturing people to death.

Island countries are different. No matter what policies the government implements to suppress real estate, island countries continue to rise every year. The room for growth varies, but they rarely experience sustained declines.

This kind of industry that only rises but does not fall, and the risks are not high, is the favorite of bankers.

“Since the end of World War II, the island country has obtained a large number of military supplies orders from the United States through the Korean War in the 1950s and the Vietnam War in the 1960s, and then rebuilt the country’s basic industrial facilities that were destroyed by World War II.

The two wars by the United States in Asia not only promoted the post-war economic recovery of island countries, but also continuously adjusted and relaxed some domestic restrictions on island countries, which in turn enabled the island countries' economy to start a state of high growth for two consecutive decades."

"In the course of two decades of rapid economic growth, the island country has completed the transformation from a post-war "developing country" to a "developed country". In 1968, its economic aggregate ranked second in the world.

second only to the United States."

"During the two decades of economic prosperity, the real estate industry in the island country also ushered in rapid development, with several sharp rises in the middle. Especially from the mid-1950s to the early 1960s, the real estate industry in the island country increased by 10% every year.

The growth rate of 20% continues to exceed the housing price limit."

“In recent years, in order to curb the rapid rise of real estate, the island country’s government has begun to tighten the money supply. The island country’s central bank has raised the discount rate to an unprecedented 9%, causing the island country’s residential loans to fall sharply.

At the same time, the island government has taken heavy measures to deal with land speculation, including policies such as increased taxation, special land tenure taxes, and a series of macro-control policies, which have had a great impact on the real estate industry."

“However, boss, I feel that this round of macro-control by the island country’s government is destined not to last long, let alone to truly curb the rising trend of housing prices.

Due to the impact of the oil crisis, the island country's economy has experienced rapid growth, forcing the island country's government to relax restrictions on the financial industry. The direct impact of the loose policies in the financial industry has been that the policies previously implemented by the island country in the real estate industry have come to naught."

"Affected by the oil crisis, global economic development has slowed down. As a country that relies on trade and exports, island countries have been greatly restricted in domestic and foreign investment. They can only invest in real estate, which is a relatively traditional value-preserving industry."

"As a result, a new round of housing price increases in the island country is bound to come soon."

Yang Chen read through the information in his hand and handed it to Lan Meiren beside him. He picked up the teacup, took a sip of tea, and asked Li Guowei who had finished speaking: "In your personal opinion, what is the room for real estate appreciation in the island country in the future?"

How many?"

"I think it should be in line with the growth rate of housing prices in the island countries in the 1960s, which was about 20% annually. Now that the island countries have entered the industry of developed countries, the people at the bottom have no shortage of money.

Nowadays, the entertainment industry in island countries is extremely developed. Many young people in island countries are no longer taking traditional industries as their future work direction. In the next few years, if the global economy does not change much, in four to five years, I think the island countries will

Housing prices in first-tier cities should double."

When Yang Chen heard this, he couldn't help but shake his head. If according to Li Guowei's calculations, it would take four or five years for the first-tier cities in the island country to double in size, then there would be no need for him to go to war.

Two years later, the yen appreciated, driving house prices in first-tier cities in the island country to rise two or three times in the following years.

Maybe two or three times doesn't seem like much, but when coupled with the appreciation of the yen, it becomes very scary.

Just imagine, a building in Tokyo worth one billion yen, at the current average exchange rate of yen to U.S. dollars is 250:1, which translates into about 4 million U.S. dollars.

With the signing of the Plaza Accord two years later, the Japanese yen's exchange rate with the U.S. dollar increased from 250:1 to 120:1 in less than three years, doubling its value.

According to the standard of at least twice the price appreciation of the first-tier cities in the island country, the price of the original building worth one billion yen has doubled, and the one billion yen has become three billion yen.

Three billion yen, plus the appreciation of the Japanese yen, four million U.S. dollars becomes twenty-five million U.S. dollars, a full five to six times increase.

With a profit of 500%, it is not difficult to imagine why after the appreciation of the yen, the people of the island country became crazy and thought that their country could finally get rid of the control of the United States. Some people even dreamed of peacefully occupying the United States by waving banknotes.

The term "nouveau riche" was used by Europeans and Americans in the 1980s to describe islanders.
Chapter completed!