Asia-Pac Real Estate will see continued change in the upcoming months due to, in no small way to continued government intervention in property sectors. All across Asia restrictions, additional taxes and protection from hot foreign money has led to a quarterly drop in mainstream prices across Malaysia, Taiwan and Singapore.
- China, the largest housing market on the planet, also continued to see prices drop, with the central government resolute in managing a soft landing. If however economic data indicates a significant weakening in the economy over the year, the central government could ease some measures to stimulate activity
- India, which is facing a stuttering economy, also saw prices turn negative over the last three months and is expected to continue to drop.
- Indonesia continued to see price rises on the back of rising incomes and urbanization, reflecting an underlying demand for quality accommodation.
- New Zealand and South Korea have experienced solid price appreciation over the last quarter, this trend is expected to continue.
- Australia continued to see its housing market deflate with the fifth consecutive quarterly price fall
- Japan saw a continuation of the long term price falls.
- Malaysia, expectations are for prices to remain steady over the coming months, with the possibility of a modest decline through the remainder of 2012.
- 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.
- Thailand, despite large amounts of supply, increasing labor, construction and land costs are being passed on from developers to purchasers, with modest price increases likely to continue through the year.
- 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.
- 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.
So as we see it’s a mixed bag of projections all over the region. It will be interesting to see how much government intervenes in the private sector to either bolster prices or keep them steady.