The Global Property Guide a website dedicated to in depth analysis of the worlds housing markets worldwide reports on the Asian property market . Senior Economist Prince Cruz from http://www.globalpropertyguide.com/ who is responsible for much of the analysis finds a strengthening in the Asian property market. This has been a result of strong economic growth and strong local and international demand, residential real estate prices in the Philippines, Singapore and South Korea.
In Hong Kong, after registering price falls in early 2006, the over-all residential price index is back in positive territory. The index rose 5.2% year on year to March 2007. However this is significantly lower than the annual price increases to the first quarter of 2005 and 2004, at 21% and 28%, respectively.
Property prices in most Asian countries are still below their peak levels, rapid price appreciation has taken place over the past five years, leading to renewed fears that a speculative property bubble is forming in several Asian countries. The findings conclude that recent price increases are actually recoveries from the previous slump caused by the Asian crisis and other phenomena (read article on Asia’s weak housing markets).
Property prices in most Asian countries are in fact still below their peak levels in real terms.
Socio-economic conditions also point to continued strong demand for residential properties. Strong urbanization and population growth has led to high population densities in several Asian cities. In view of the relatively restrained dwelling price rises, strong economic growth and banking sector caution and healthy yields to be enjoyed on properties in Asia, talk of another bubble seems far-fetched.
Source: Matthew Montagu-Pollock
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Phone: (+632) 867 4220
Cell: (+63) 917 321 7073
Web: [email protected]
