Tightened mortgage lending and rising interest rates continued to impact on buyer demand in most Asian markets in the second quarter of 2011.
Buyer sentiment weakens amid further tightening measures
Concern over the regional economic outlook rose as the economic situation in the United States and Eurozone worsened in July, and further deterioration could have a knock on effect on the Asian economy.
Transaction volume remains generally stable
Trading volume in Shanghai and Hong Kong declined on a q-o-q basis in the second quarter whilst activity in Singapore remained steady. Southeast Asian markets displayed mi xed results, with Ho Chi Minh City recording a significant fall in completed deals.
via CBRE Thailand Asia Luxury Residential MarketView Q2 2011.
Price appreciation begin to ease
The CBRE Asian Luxury Residential Capital Value Index rose by 2.5% q-o-q in the second quarter compared to a rise of 5.5% q-o-q recorded in the first quarter. In Hong Kong price appreciation moderated to 8.9% q-o-q from 14.0% in the first quarter, although the rate of growth nevertheless remained the fastest in the region. Capital value growth eased in the most first-tier cities in China following the implementation of further restrictions on home purchases. Prices in Bangkok and Ho Chi Minh were static as demand from end users was dampened by more stringent mortgage policies.
Prices to remain stable
Luxury home prices in Asia are expected to remain stable over the remainder of 2011 although some markets could witness a slight decline. Buyer sentiment is expected to continue to weaken in the face of further interest rate hikes and the tightening of credit, which will put greater downward pressure on home prices. Concern over the potential introduction of new tightening measures in China, Singapore and Hong Kong may also restrain capital value growth.
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Goods produced in Hong Kong and exported to the US must be “marked to indicate that their origin is China”, according to a notice put out by US Customs and Border Protection (CBP) on August 11, 2020.
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Reporters Without Borders (RSF) urges democracies to do everything in their power to compel Beijing to withdraw the law that allows it to charge any journalist writing on Hong Kong of endangering national security, an accusation that could result in life imprisonment or even the death penalty if tried in China.(more…)
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