Still bubbling away…
I would not want to know what the rental yield on this one would be. Less than 2%?
Maybe the property spruikers will prove correct and the laws of compound interest can be rewritten allowing house prices to double every 7-10 years!!!
If that is the case, then the geniuses who paid $1.9 for a 1 bedroom apartment here will be able to sell their 1 bedroom apartment for $3.8 million in 2019 or $7.6 million in 2026 and then maybe when China has taken every bit of iron ore out of the ground in Africa, Brazil and Australia after 21 years of boom as predicted by the RBA then someone will come along and pay $15.2 million for one of these 70 square meter apartments in 2033.
Stranger things have happened and if China keeps building at the rate that they have, then they will have an enough for four office spaces for every man woman and child in China by this time!!!
Perhaps if we have 1970’s style inflation for 20 years, then these apartments may look good value.
Whilst I do think that inflation may be higher in the future, I wouldn’t bet the house (or small apartment) on this.