For those looking for property investment opportunities in the Asia-Pacific region, things are looking up.
Asia-Pacific residential property markets holding well
Residential property markets here are still holding up well, especially as economies in the region perform favorably.
In Singapore and China, for example, property cooling measures implemented by their governments have been successful in reducing housing prices and curbing inflation in the sectors.
Singapore’s public housing prices are still coming down, while private property prices have rebound after 15 consecutive quarters of decline. In the most housing report published by S&P Global Ratings, housing prices only fell in 3 markets in the last quarter:
- Mainland China’s tier-one markets
- Public housing in Singapore
- Property prices in Sydney
In Sydney, restrictions on bank loans and inflow of foreign investment monies in particular from China, have cooled the market somewhat. Additional housing supply is also in the pipeline, hence possibly forewarning of the likely decline in the upcoming quarters. New mortgage borrowing have slowed and the market is heading towards a cyclical downturn.
Hong Kong bucks the trend with strong property market showing
Overall, the region’s residential property markets are still going strong, in particular in Hong Kong. The rising housing prices here seem almost unstoppable. The Hong Kong government have implemented a series of measures to try and cooling the red-hot market, but not to much avail.
Demand continues to be strong as the city remain a popular one for multinational companies to headquarter in. Investors also tend to look at the market as one of the most viable ones for growth potential.
In China, however, housing price in tier-1 cities such as Shanghai, Beijing, Guangzhou, Chongqing, and Tianjin have dipped slightly due to the effective measures implemented by the Chinese government. In the tier-2 cities, the measures were milder. China’s home loan market, however, continues to expand at the fastest rate in the region.