When demand is on the rise, usually the prices are driven up as well. Considering the fact that the demand for houses is continuing to rise in some Asian countries, including Singapore, special measures and policies have been adopted to break the inflation of prices in this sector. According to a report recently released by S&P Global Ratings, the monetary policies and measures meant to cool down prices have managed, so far, to keep house prices within acceptable limits.
Even though the rates of expansion for credits with a mortgage are lower than half a year ago, these type of credits is still taking place at a wide rate across the region. At the same time, the monetary policies remain mainly the same, which keeps mortgage rates low, even lower than before, easing the load for the people that get these credits out of the desire to have their own homes. Also, the specialists at S&P said that these measures suffered changes in time, so they are capable to do their job better. And they managed to do so, as the house prices in various regions around the Asian-Pacific area manage to remain within acceptable boundaries.
When it comes to Singapore, the report underlines slight price decreases in recent times. Public housing is the first sector of the country’s property market that enjoyed these decreases, followed by private residential sector. Besides Singapore, prices also fell in Sydney, Australia, and Tier 1 markets in China. What is interesting about China is that, in spite of the fact that these cooling measures slowed down the growth of mortgage credits, the country’s residential market is still the fastest one in the region when it comes to expansion. Still, Hong Kong did not manage to do such a great job at keeping prices low, in spite of the solid measures that were adopted by the city. The reason lies behind the incredibly high demand of housing in this particular area. According to Mr. Rana, an S&P economist, the Hong Kong property market is unstoppable.
But, overall the property market in this part of the world is still very sturdy, due to the economic conditions that are more than favorable, labor markets that continue to be tight, and monetary policies that keep up with the times.
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