Wednesday, September 15, 2010

Real Estate - Australia and India

- australia is a conundrum. their real estate correction can not precede a chinese downturn in my view. bhp billiton and other miners who mainly export to china/asia have recorded multi billion dollar profit. bhp is buying out canadian co potash for c. USD40 billion. aussie economy is based on mining. i think we are far from a correction. aussie mouse is riding the chinese dragon..dangerous at some stage. many experts have started questioning the chinese growth...let's see..timing is key.

- kalpataru/ashok tower at parel now quoting rs 30,000 a foot or slightly below. my friend's 2,000 sft flat leased out at rs 17 lakh (140k pm) pa ie a yield of 3%, similar to sydney! earlier mumbai yields were 5% for residential. everything is booming. it took me 15 minutes to walk out of andheri station after getting off the train at  platfrom no 7 or 8 or 9(!). walked in a sea of humanity - thousands of people walking in and out of station with tiredness, patience  and enthusiasm at 7pm. the potential human energy is unbelivable - in my view much larger than the heat of all the oil in saudi arabia. just imagine if these people's energy is channelised properly, they could overturn an empire! i won't be surprised with a 10% GDP next 10 years. also spent 2 hours with ceo and directors at a leading investment bank. they are doing great business and are upbeat. couldn't see a person who is complaining about money - whether beggars, housemaids, executives.  now in that case why should real estate be any cheaper in mumbai?

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