Real estate markets in Asia Pacific are likely to see varying fortunes in the coming months as government policies continue to affect the sector.
That is the verdict from a Knight Frank report, which says that continued government intervention in property markets across Asia has proved effective, as lending restrictions, additional taxes and protection from hot foreign money has led to a quarterly drop in mainstream prices across Malaysia, Taiwan and Singapore.
China is also seeing a continued trend of decreasing housing prices with the government making efforts to manage a soft landing. The last three months’ housing prices in India, where the economy is facing a slump, have also seen a downward trend. The market is expected to continue to soften but if the Chinese economy weakens significantly over the year, as some predict, the government could ease some of its cooling measures to stimulate activity, explained Knight Frank in the report.
That is the verdict from a Knight Frank report, which says that continued government intervention in property markets across Asia has proved effective, as lending restrictions, additional taxes and protection from hot foreign money has led to a quarterly drop in mainstream prices across Malaysia, Taiwan and Singapore.
China is also seeing a continued trend of decreasing housing prices with the government making efforts to manage a soft landing. The last three months’ housing prices in India, where the economy is facing a slump, have also seen a downward trend. The market is expected to continue to soften but if the Chinese economy weakens significantly over the year, as some predict, the government could ease some of its cooling measures to stimulate activity, explained Knight Frank in the report.
In contrast to these drops however, prices in Indonesia, New Zealand and South Korea experienced solid appreciation over the last three months. Especially in Indonesia rising incomes and urbanisation reflected an underlying demand for quality accomodation. The country is expected to continue to experience strong demand, although the effect of the new minimum down payment of 30 per cent for mortgage loans from June 2012 could have an effect on performance, particularly in the middle to low end segments.
According to the report, Australia continued to see its housing market deflate with the fifth consecutive quarterly price fall and Japan saw a continuation of the long term price falls.
Expectations for Malaysia are for prices to remain stable in the coming months with a possibility of a modest decline towards the end of the year.
In Singapore, given the large amount of supply coming onto the market, along with existing unsold inventories, prices of private residential properties are expected to continue to correct through 2012.
In Thailand, despite large amounts of supply, increasing labour, construction and land costs are being passed on from developers to purchasers, with modest price increases likely to continue through the year.
In Vietnam, with inflation moderating, the market is looking at bottoming out and could see a pickup in activity if interest rates are able to be eased further.
In Hong Kong, buyers are expected to remain more reluctant to make purchase decisions, amid uncertainty in the world economy. House prices are expected to therefore soften during the year, but at a modest rate, given limited supply.
India is likely to continue to see an uneven year, with the cities that experience high levels of speculative demand likely to be more volatile than those based primarily on end user demand.
by Property Report
According to the report, Australia continued to see its housing market deflate with the fifth consecutive quarterly price fall and Japan saw a continuation of the long term price falls.
Expectations for Malaysia are for prices to remain stable in the coming months with a possibility of a modest decline towards the end of the year.
In Singapore, given the large amount of supply coming onto the market, along with existing unsold inventories, prices of private residential properties are expected to continue to correct through 2012.
In Thailand, despite large amounts of supply, increasing labour, construction and land costs are being passed on from developers to purchasers, with modest price increases likely to continue through the year.
In Vietnam, with inflation moderating, the market is looking at bottoming out and could see a pickup in activity if interest rates are able to be eased further.
In Hong Kong, buyers are expected to remain more reluctant to make purchase decisions, amid uncertainty in the world economy. House prices are expected to therefore soften during the year, but at a modest rate, given limited supply.
India is likely to continue to see an uneven year, with the cities that experience high levels of speculative demand likely to be more volatile than those based primarily on end user demand.
by Property Report
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