Eco­nomic un­cer­tainty en­ters global mar­kets

HT Estates - - NEWS - HT Es­tates Cor­re­spon­dent

Asian mar­kets are stum­bling. While In­dia con­tin­ues to suf­fer from pock­ets of over­sup­ply and a gap in pricing ex­pec­ta­tions be­tween de­vel­op­ers and buy­ers, Sin­ga­pore, Hong Kong and Taiwan too are see­ing prices de­clin­ing by be­tween 3% and 6%, a com­bi­na­tion of slug­gish eco­nomic growth, reg­u­la­tory mea­sures and new sup­ply are re­strain­ing price growth, says a new re­port.

The re­port by Knight Frank, the in­de­pen­dent global prop­erty con­sul­tancy, is ti­tled Global House Price In­dex.

The in­dex mon­i­tors and com­pares the per­for­mance of main­stream res­i­den­tial mar­kets in 55 coun­tries across the world. The in­dex grew by 3.4% on av­er­age in the 12 months un­til the first quar­ter but top per­form­ing coun­tries such as Tur­key and Aus­tralia are see­ing their rate of an­nual price growth slow.

“The slow­down in growth across many emerg­ing Asian economies has weighed on res­i­den­tial prop­erty mar­kets. In­done­sia and Malaysia are feel­ing the im­pact of the wider macro- eco­nomic slow­down. In­dia con­tin­ues to suf­fer from pock­ets of over­sup­ply and a gap in pricing ex­pec­ta­tions be­tween de­vel­op­ers and buy­ers.

The Chi­nese mar­ket is still see­ing po­larised per­for­mance, where Tier-1 and large Tier-2 cities are see­ing price growth; whilst smaller Tier-2 cities, Tier3 and Tier-4 cities are strug­gling with high un­sold in­ven­tory,” says Ni­cholas Holt, head of re­search for Asia Pa­cific.

The US and the UK are largely tread­ing wa­ter, price growth in the first three months of 2016 equated to 0.9% and 1.6% re­spec­tively, linked in part to po­lit­i­cal wor­ries.

FILE PHOTO

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