Despite the slowing economy, the Asia Pacific region is seeing increases in residential market prices.

 

According to the newest edition of Knight Frank's Asia Pacific Residential Review, produced by Nicholas Holt, certain Asia Pacific countries are seeing prices rise in their home markets despite a worldwide economic recession. His findings were published in a news release on the internet. qatar selling

Since the third quarter of 2009, Hong Kong has had its fastest quarterly growth.

According to the research, price growth in the Hong Kong residential market increased from 1.8 percent to 8.4 percent in Q2 as confidence improved and pent-up demand drove up transaction volumes.

Markets are still being influenced by the global economy's persistent instability. Weaker economic growth has had an influence on buyer sentiment and, in certain circumstances, wealth. Despite this, property as a hard asset is still viewed as a safe investment option, as evidenced by inflation and often negative real interest rates, according to the research.

Government intervention in various property markets, which has continued throughout 2012, has added to the complexity of the problem. Additional cooling measures have lately been implemented in Hong Kong, Indonesia, and Malaysia.

According to Knight Frank's report, it is unlikely that any of the cooling measures will be lifted in the short term due to fears that central bank activity in the Eurozone, Japan, and especially the United States will lead to excess liquidity finding its way into property markets on this side of the world.

Government involvement in various forms is expected to continue due to the conflicting policy objectives of stimulating economic growth while avoiding excessive asset price rise.

China's economy is weakening, with growth expected to be less than 8% in 2012, the lowest rate since 1999. The United States, on the other hand, expects its Gross Domestic Product (GDP) to reach 2% by the end of the year.

At the conclusion of Q2 2012, prices in Shanghai and Beijing were down 7.1 percent year on year, while prices in the inexpensive section of the market continued to rise, showing true end user demand, according to the research.

"Given the downturn, it will be fascinating to see if the new (China) leadership in November continues with the property cooling measures," Holt writes in his news release.

.

In 2012, new home sales volumes in Singapore reached an all-time high, with prices continuing to rise on a quarterly basis.

'However, with significant inflation and thus negative real interest rates, there is a genuine incentive to put money in property,' says Holt. "The low mortgage rates and Singapore's reputation as a'safe haven' have aided this."

By the end of 2012, total sales volume is forecast to reach a new high, with 20,000 to 22,000 private dwellings sold.

The Malaysian government declared in its latest budget that the Real Property Gains Tax (RPGT) will be hiked from 10% to 15% for properties sold within two years, and from 5% to 10% for properties sold in the third to fifth year, taking effect from January 1, 2013.

The establishment of a 70 percent Loan to Value (LTV) cap in Indonesia in July did not deter demand, as optimistic buyer sentiment fueled price increases in the Jakarta market. In the second quarter of 2012, housing prices rose 1.2 percent across Indonesia, with the CBD Jakarta condominium market seeing the most growth, up 16.7% year on year.

In 2012, less supply entered Thailand's Bangkok condominium market as existing stock was gradually consumed and developers shifted their focus to the resort locations of Phuket, Pattaya, and Hua Hin, where demand and supply dynamics are more favorable.

Although average prices in India increased by 3.3 percent in Q2 2012 across the country, this average masks differences between cities, according to Holt, who observes that the difference between Pune (+10 percent) and Jaipur (-3 percent) was "a startling" 13 percent.

Despite the fact that Australia's price movements were positive in Q2 2012, the Reserve Bank of Australia's interest rate decreases, which totaled 150 basis points since November 2011, have had little impact on the housing market.