New Oriental Education CEO Says Home Prices Can Double in 10 Years, And Again in 20

Wharton/Tsinghua Chinese Residential Land Price Indexes (CRLPI), Updated to the Fourth Quarter of 2017 (2017q4)
Chinese land and home prices have soared over the past two decades and the CEO of New Oriental Education, Yu Minghong, thinks they can double again over the next ten years, and then again.
Yu Minhong: After 10 years and 20 years, the house price is 300,000 to 400,000 yuan per square meter.

In the "Four 40s" column of NetEase Finance, which was broadcast on July 12, Yu Minhong, chairman of New Oriental, said that after 10 years and 20 years, the house price was 3 to 400,000 yuan per square meter.

In Yu Minhong's view, the renminbi is getting more and more. This is a natural depreciation process. Now that the 100,000 per sqm house is normal after 10 years it will be 200,000 yuan, this is the only way for a country to develop.
In contrast, the Foxconn CEO talks about how he felt frustrated for investing in high-tech equipment instead of buying the land for the factory in Taiwan. His friends made multiples more simply buying real estate:

Guo Taiming "Do not buy a house, learn technology"

Real estate can only earn once, engage in technology to earn countless times

On July 9, Foxconn Group President Guo Taiming appeared in the CCTV "Financial People Weekly" column. When recalling the initial establishment of the factory, Guo Taiming said that there was only one sum of money at the time, but he needed to make a difficult decision: Go buy a piece of land, cover the factory; or rent a factory to buy mold manufacturing equipment.

In the end, he decided to purchase the most advanced Japanese mold machine development technology strength at that time. However, this decision made him frustrated for a long time. At that time, the Chinese Taiwan economy had just taken off, the real estate market was hot, house prices were soaring, and the friends around him earned a lot of money.

I use the word "frustration" to describe that time, why? Because I didn't choose that land at the time. After I bought the mold machine, the real estate was soaring, it was up 10 times, but the factory I rented, the boss wanted to increase my rent, but after I bought these new equipment, I was still learning, and the yield (qualification rate) was very low. The mold I made was not bought outside. ”

"At that time, we gave us the test. We insisted that the mold factory is right. After three or five years, although the land price has increased tenfold, it will not go up again."

Guo Taiming said, "So I think that the real estate thing is just earning money once; but your core technology forever can make countless times of money."
According to the original post, these two viewpoints have set off a fierce debate among China's netizens: 俞敏洪:10年20年后,房价三四十万一平米

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