Economic uncertainty enters global markets
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.