tag:blogger.com,1999:blog-19301908.post6049352693249070223..comments2014-06-26T17:47:05.089+05:30Comments on Eclectic Investor: Lessons from Japan's Housing Bubble - IEclectic Investorhttp://www.blogger.com/profile/16398703010402269262noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-19301908.post-16580276258577999632008-10-30T10:12:00.000+05:302008-10-30T10:12:00.000+05:30Regardless of whatever Colton or Sanjeev have said...Regardless of whatever Colton or Sanjeev have said, one thing is for certain that the Indian property market has become very speculative with gains from stock markets causing real estate speculation just like what happened earlier in Japan.<BR/>Now that those gains have evaporated and lending has tightened one is witnessing the decline of the real estate market.<BR/>As far as demographics is concerned - property prices are not directly dependent on demographics. It is a pure demand-supply equation. <BR/>Another thing to remember in recent months commercial real estate prices had risen to such levels that tenants began doubting the financial viability of doing business in such expensive locations. <BR/>Real estate is mostly a facilitating asset not a directly productive asset. Apart from rising wage costs the rising cost of real estate is one of the major contributors to the increasing cost of doing business. When the good times end, real estate is bound to decline.<BR/>This is what we are seeing now.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19301908.post-8862653000563154062008-10-29T18:34:00.000+05:302008-10-29T18:34:00.000+05:30Yeah... I agree. As of now it seems to be having a...Yeah... I agree. As of now it seems to be having a bubble but a very small one.<BR/>Prices in most of the places are still in the region of 3000 to 5000. This can't be considered as a HUGE bubble. <BR/>But I guess, this is Bob's style of writing !dhinchakhttps://www.blogger.com/profile/18409911515717049870noreply@blogger.comtag:blogger.com,1999:blog-19301908.post-92151175622364855692008-10-29T18:23:00.000+05:302008-10-29T18:23:00.000+05:30SIR U HAVE IGNORED THE VERY BASIC FUNDAMENTAL POIN...SIR U HAVE IGNORED THE VERY BASIC FUNDAMENTAL POINT... THAT IS THE DEMOGRAPHY.....<BR/>WHILE JAPAN HAS BEEN SUFFERING FROM REDUCTION OF POPULATION, INDIA IN FACT HAS THE OPPOSITE CASE.....<BR/>DEMAND FOR NEW HOMES WILL E INTACT IN INDIA FOR AT LEAST NEXT 25 YEARS....<BR/>TRUE THAT THERE WILL BE SOME CORRECTION IN PRICES, BUT ITS NO WAY RATIONAL TO COMPARE IT WITH THAT OF JAPAN.Sanjeev Goyalhttps://www.blogger.com/profile/05838471453655417899noreply@blogger.comtag:blogger.com,1999:blog-19301908.post-68949856481067982972008-04-25T19:04:00.000+05:302008-04-25T19:04:00.000+05:30There is simply no comparison between the Japanese...There is simply no comparison between the Japanese real estate market and the India real estate market. The Japanese bubble collapsed due to a myriad of financial mistakes and accounting tricks which created a tulip like frenzy for real estate. India has no such situation and is very under-leveraged financially. Sure some prices are too high, but the underlying fundamentals are still sound.RJhttps://www.blogger.com/profile/07444334741868669943noreply@blogger.com