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> facilities were purchased for between 1 million yen and 5 million yen and resold to Chinese buyers for between 40 million yen and as much as 100 million yen d
by jorams 5mo ago
> facilities were purchased for between 1 million yen and 5 million yen and resold to Chinese buyers for between 40 million yen and as much as 100 million yen depending on location
Those prices seem weird. They were buying entire care homes and hotels for less than the price of a car? I understand they come with obligations, but these businesses were apparently financially ok before the acquisition.
- protimewaster 5mo ago> Those prices seem weird. I was thinking the same thing. In many parts of the world, even a failing / debt laden business would be worth much more than that.
- colechristensen 5mo agoIn at least some parts of the world real estate isn't the ridiculous "investment" it is in the US.
- juleiie 5mo agoReal estate in good location is an investment almost everywhere Good location being the key here I doubt a house the price of a new car qualifies as being in a good location. Tokyo on the other hand… yeah I doubt you would see anything cheaper than couple million dollars there
- colechristensen 5mo agoYour straight up guessing with zero information is ridiculous. The average apartment cost in Tokyo is a little north of $400k (USD), since the year 2000 or so the value of Tokyo apartments has appreciated somewhere around 3% per year. Apartment prices are ALMOST back to where they were in 1989.
- bob001 5mo ago> Apartment prices are ALMOST back to where they were in 1989. You mean when Japan was in an epic price bubble (ie: the imperial palace land alone was worth more than all of California) which was followed by decades of economic stagnation? I'd guess that has impacted their view on real estate to a somewhat unique degree in the world.
- juleiie 5mo agoI guess it is a small island after all. Not a great example to extrapolate to more connected economies. Still, it is twice as expensive per square meter as my European capital city. So looking at it without any historical data it is still much more expensive even with declining population and no immigration. More like an exception to the rule really as it really has unique conditions as opposed to rest of the world.
- bob001 5mo agoAnd yet companies file for bankruptcy and get liquidated all the time versus being bought.
- decimalenough 5mo agoI'm familiar with Japan and find it quite believable. You may be familiar with the "akiya" phenomenon, where empty houses in the Japanese countryside are sold for a song. The same applies not just to residential homes, but to other buildings as well, and their price tag is very low for the same reason: the property has serious issues and/or has been vacant for years, and will require far more than the initial investment to make habitable. Here's a fascinating blog post by someone who went poking around the ruins of one hot spring town (Kinugawa) that went through a particularly dramatic boom and bust cycle: https://spikejapan.wordpress.com/2010/06/14/983/ https://spikejapan.wordpress.com/2010/06/14/983/ This particular hotel at least appears to have been open until fairly recently, but Google reviews describe the "Showa-era" furnishings (read: 1980s at best), and it's on the fairly grim slate grey Kujukurihama beach 3.5 hours from Tokyo by train: https://maps.app.goo.gl/G53KWyCsmeUy8JyR9 https://maps.app.goo.gl/G53KWyCsmeUy8JyR9
- eudamoniac 5mo agoYeesh - interesting blog post, but terribly sophomoric prose, distracting and clumsy. The author is at least 40 and should know better.
- deleted 5mo ago[deleted]
- antonvs 5mo agoI respect the attempt at belletristic writing, even if it falls a bit short. If they had an editor to rein in some of the thesaurus usage it’d be fine. Not everyone appreciates the style, though.
- ekianjo 5mo agoWe are not taking about akiya here but actual businesses. A thriving business would never sell for one million yen.
- decimalenough 5mo ago