It is not news that someone predict the drop (serious drop) in real estate price. This oppinion was strong three years ago, and is still strong today. The reality, however, is just on the opposite part.
Today, when Wendy and I walked around the neiboughood, and past the Sales Office. Out of curious, we stepped in and was astonished by the current price of real estates.
Wendy and I bought the current apartment in 2003. At that time, the price as 5900 RMB per sq. meter.
Today, when we asked the price at the same location (just the other side of the road), it turned out it is already 18,000 RMB per sq. meter. If we consider the price of 3000-4000 sq. meter in early 2003, that is 3 – 4 times increase in 4 years.
For good quality aparments, the “reasonable” price already raised to 20,000 – 30,000 RMB per sq. meter. This high price was only seen in the houses along the Huang Pu River at the Lujiazui area 5 years ago. Now, it is common price.
I am very confused, and the price seems keep going up dramatically.