Asia-Pacific housing market hangs in the balance, study says

  • 11 years ago
  • Uncategorized

Despite the introduction of legislation aimed at cooling off the rising property prices across Asia-Pacific, mainstream house prices across the region increased by an average of eight per cent in the third quarter of the year, a study says.

The report conducted by real estate consultants Knight Frank, revealed that the result of these cooling measures has been varied. In some parts of the region, the cooling measures taken have slowed the growth of house price and provided policy makers with the option to try and create demand if the cooling measures prove too much.

Countries such as Malaysia have experienced an overflow from the Singapore market, boosting their property prices and making them too expensive for the people currently living there. According to, these cooling off measures have been put in place to primarily counteract that.

Nicolas Holt, head of research for Asia-Pacific at Knight Frank, told that Singapore and Hong Kong are both likely to see sales decline as new house buyers see mortgage rates rise and the attraction of these properties decrease.

Mr Holt said: “Factors like economic performance have a bigger impact on house prices than changes in the interest rates. If the fragile global economic recovery continues, hard, income yielding assets such as property will continue to do well, on the other hand if the global recovery gains pace, property will again benefit from growth.”

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