Rebirth of Hong Kong 1981

   Chapter 871 Upstart

  Repulse Bay Villas

  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 Landmark, he followed Yang Chen's orders to go 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 after Yang Chen established the Yang family consortium, he was going to stop taking a slant. The series of decisions that Yang Chen made before finally gained huge benefits.

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

   Now Yang Chen is the richest man in China and the richest man in Asia, and there is no other person richer than him in the whole Asia, so Li Guowei thinks that his boss is starting to take care of himself and no longer pursue high-risk investments.

  As a financial and banking professional, Li Guowei always prefers to speak according to data. In Li Guowei's view, data is the basis that can best reflect the economic development of a company and a country.

  In the real estate industry of the island country, according to the current data, there is still a lot of room for appreciation, although the island country government has long implemented policies to curb the rapid rise in real estate.

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

  Bankers always prefer to pursue long-term interests. As long as any industry can bring long-term and stable income, the banking industry will favor this industry.

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

   As we all know, island countries are a country with more people and less land, and 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, the islanders have always believed in the myth that the price of land only rises and does not fall.

  House prices only go up but not down. This is the result of statistics from the development data of the island country's real estate industry 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. Heung Kong basically reincarnates every ten years on average.

  The island country is different. No matter what policy the government implements to suppress the real estate, the island country continues to rise every year, and the room for the rise is high or low, but there is rarely a sustained decline.

   This kind of industry that only goes up and not down, and the risk is not high, is the favorite of bankers.

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

  The two wars of the United States in Asia not only promoted the economic recovery of the island countries after the war, but also continued to adjust and relax some domestic restrictions on the island countries, thus enabling the island countries’ economy to start a state of high growth for 20 consecutive years. "

"In the course of two decades of rapid economic growth, the island country has completed the transition from a post-war "developing country" to a "developed country", and in 1968, its economic aggregate jumped to the second place in the world second only to the United States.”

"During the 20-year economic boom, the real estate industry in the island country also ushered in rapid development, with several surges in the middle, especially during the period from the mid-1950s to the early 1960s. The growth rate of 20% continues to break through the house price limit.”

   "In recent years, in order to curb the rapid rise in real estate, the island country government began to tighten the money supply. The island country's central bank's discount rate was unprecedentedly raised to 9%, causing the island country's residential loans to drop sharply.

   At the same time, the island country government has made great efforts to deal with land speculation, adding policies such as increased taxation, special landholding tax, and a series of macro-control policies, which have a great impact on the real estate industry. "

   "However, boss, I think this round of macro-control by the island country government is destined to not last for too long, let alone really curb the rising trend of housing prices.

  The economy of the island country is growing rapidly. Because of the impact of the oil crisis, the island country government has to relax the restrictions on the financial industry. The direct impact of the easing policy in the financial industry is that the policy implemented by the island country in the real estate industry came to nothing. "

   "Affected by the oil crisis, the global economic development has slowed down. As a country exporting by trade, the island country can only invest in real estate, which is a more traditional value-preserving industry, under the circumstance that domestic and foreign investment has been greatly restricted."

   "In this way, a new round of housing price increases in the island country is bound to come soon."

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

   "I think the growth rate of housing prices in the island country in the 1960s should be in line with the growth rate of about 20% per year. Now the island country has entered the industry of developed countries, and the people at the bottom are not short of money.

Now the entertainment industry in the island country is extremely developed, and many young people in the island country are no longer working in traditional industries. In the next few years, if the global economy does not change much, in four to five years, I think the island country will Housing prices in first-tier cities should double. "

   Yang Chen couldn't help shaking his head when he heard this. If according to Li Guowei's calculation, the first-tier cities in the island country would only double in size in four or five years, then he wouldn't have to make a big move at all.

   Two years later, the yen appreciated, and in the following years, housing prices in first-tier cities in the island country rose two or three times.

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

  Imagine a building in Tokyo worth one billion yen, at the current average exchange rate of yen to US dollar 250:1, which is about 4 million US dollars.

   With the signing of the Plaza Accord two years later, the exchange rate between the yen and the US dollar has changed from 250:1 to 120:1 in less than three years, and the appreciation has doubled.

  According to the standard of the first-tier cities in the island country, the house price appreciation is at least two times the standard. The original building worth one billion yen, the house price has tripled, and one billion yen has become three billion yen.

  Three billion yen, plus the appreciation of the Japanese currency, four million US dollars became 25 million US dollars, a full five to six times in the middle.

  500% profit, it is not difficult to imagine why after the appreciation of the yen, why the islanders would madly think that their country can finally get rid of the control of the United States, and even some people even delusionally waving banknotes to occupy the United States peacefully.

The term   upstart was used by Europeans and Americans to describe islanders in the 1980s.

  ———

   (end of this chapter)