Singapore Home Price Growth Slows, Rents Decline as Market Cools
Singapore home prices grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.
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Singapore home prices grew at a slower pace last quarter and rents fell, as the city-state’s property boom began to lose steam.
Hong Kong home prices rose for the first time in almost a year in March as the city’s removal of property curbs revived sales.
Greater China’s property market crisis and the challenges it poses for lenders will be on full display on Monday, when embattled developer China Vanke Co. and the region’s biggest banks report earnings.
China’s overseas investment is heading for an eight-year high as its dominant firms build more factories abroad, a shift that could soften criticism of Beijing’s export drive.
The Related Cos. founder is following the money flowing south by bringing his influence to everything from real estate to schools and health care.
Dec 9, 2018
Bloomberg News
,(Bloomberg) -- Soft landings in housing markets are rare and Australia should be ready to respond to the risk of a significant price dive, the OECD said.
In its latest survey of Australia, the Paris-based group forecast economic growth of 2.9 percent next year, leading to a gradual pickup in wages and inflation. While it said the housing market’s cooling was so far orderly, it warned that high property prices and household debt were potential instabilities.
“Risk of an overshoot in the price correction -- a hard landing -- remains,” the Organisation for Economic Co-operation and Development said in its report. “Estimates of housing valuation are highly uncertain” and “past OECD work has found soft landings are rare.”
Australia’s house-price decline is centered on Sydney and Melbourne and reflects credit curbs and increasingly nervous buyers. But unusually, the drop is happening against a backdrop of record-low interest rates and strong hiring; whereas historically, property downturns occurred when rates were high, growth was slowing and unemployment rising.
Past falls in the housing market were halted when policy easing encouraged buyers to return. Interest-rate cuts are less likely now -- and with the cash rate at a record-low 1.5 percent, the Reserve Bank has limited ammunition.
“The authorities should prepare contingency plans for a severe collapse in the housing market,” the OECD said. “These should include the possibility of a crisis situation in one or more financial institutions.”
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To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net
To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke
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