The value of money

Something that got me thinking was an ad in the Economist. I still can't get used to how expensive things are in London and this HSBC ad really puts things into perspective:

What kind of property does £175 000 buy on your latitude?

Garage, Chelsea, London

* actually this very garage was sold for $ 1 million

2 bedroom apartment, Cote d'Azur, France

Beachside villa, Thailand

So I ask myself...who in their right minds would buy property in London?
Still...Barhrain and Moscow apparently beat UK in prices, so I am not in the worst place in the world. But...compared to back home I cannot get used to how expensive everything is...