China’s Millions Of Poor Millionaires.
How can a millionaire be poor? This is a paradox. If you own a house in Beijing, Shenzhen, Shanghai and Guangzhou, you are a millionaire through your asset which is your house.
Those who bought the houses there several years ago now stand to make a tidy sum because of the property boom. Their houses are now worth a million.
Their millions were created by the real estate developers who pushed up the housing prices.
The value of their house appreciated but their lifestyle did not change. They were still poor and did not belong to the rich or the elite. Those prices could be artificial and like those stocks can come down when the bubble burst.
Those who buy now would suffer greatly should the prices deflate.
This phenomenon also happens worldwide where the bullish property prices pushed up the prices of houses and shop lots in London, Singapore and in Malaysia too. It is crazy, a 70 year old double story shop house in the country side is going for Rm$300K WOW!!!!! A few years back it was only 140K . The rental has also ballooned sky high. When will this madness end? Everything has gone up but business is down…Businessman complaining of slow sales. Even the supermarkets are not spared.
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