What will happen if the house price continues to rise in ten years?

What will happen if the house price continues to rise in ten years?
Jun 18, 2007 03:42
JIMMYB Points: Join Date: Feb 7, 2007 Status: offline	Today the stock market and the real estate have been talked about too much. Both are rocketing and going crazy. Some businessmen in real estate claim that the house price will continue to rise in ten years. A magnate once said that the history has proved that the house price will always rise. This was quoted as a golden saying. In some place, the house price per square meter has reached 110,000 RMB. Can you believe it? Actually, the cost is about 4000 RMB. We do not know whether the house price will rise or drop in ten years. If things go on like what those businessmen said, what will happen?

Jun 18, 2007 03:42

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: offline

Today the stock market and the real estate have been talked about too much. Both are rocketing and going crazy.

Some businessmen in real estate claim that the house price will continue to rise in ten years. A magnate once said that the history has proved that the house price will always rise. This was quoted as a golden saying. In some place, the house price per square meter has reached 110,000 RMB. Can you believe it? Actually, the cost is about 4000 RMB.

We do not know whether the house price will rise or drop in ten years. If things go on like what those businessmen said, what will happen?

Jun 18, 2007 03:44

JIMMYB
Points:
Join Date: Feb 7, 2007
Status: Offline

According to the statistics, the house price in Beijing and Shenzhen in May has increased 51.57% compared with the average price in last year. Compared with April, it increased 22.86%. Now let's do a mathematical problem. Suppose that the house price increases 22% every year and the house price per square meter is 14000 RMB( the present price of the house price in Shenzhen).Ten years later, it will reach 83800 RMB per square meter. If you want to buy a house about 120 square meters, you need to pay 10,056,000 RMB. How can you imagine this?

If the house price continues to rise about 22% per year, there will be fewer people who can afford to buy a house. Those wihte-collars will be homeless just like those beggers on the street. Two ends are prepared for this. One is the bubble of real estate will collapse, the other is that serious social problems will appear.

Jun 18, 2007 03:46	#2
JIMMYB Points: Join Date: Feb 7, 2007 Status: Offline	"Hi, buddy. I can understand you. We are all the slaves of the house."

Jun 19, 2007 03:31	#3
ZOEY Points: Join Date: Nov 29, 2004 Status: Offline	Terrible. The bubble of China's real estate will break one day. Let's wait and see.

Jun 19, 2007 12:51	#4
LIONPOWER Points: Join Date: Dec 11, 2006 Status: Offline	Not in short time.

Post a Reply to: What will happen if the house price continues to rise in ten years?