Asian property market cools

After experiencing strong growth since 2009, Asian property markets are now either flattening or declining, according to the Wall Street Journal.

Reports from Hong Kong, Sydney, Singapore and Beijing reveal that property values have declined, while the Kuala Lumpur and Bangkok markets remain unchanged.

As witnessed in Singapore, the decline comes after the government implemented cooling measures to rein in high property prices.

“Right now, to many of the governments including China and Singapore, they see more risks in asset bubble forming than a sharp fall in housing prices,” said Jinsong Du, an analyst at Credit Suisse.

In China, where Beijing has imposed curbs to clamp down on speculation, average property prices in 70 cities recorded their first monthly decline in October.

“We still see a strong medium-, long-term demand for residential developments in China because people always want to upgrade or improve their living standards,” said Justin Chiu, Executive Director of Cheung Kong Holdings Ltd, a Hong Kong developer that has recently increased its presence in China.

China’s National Bureau of Statistics noted that total residential sales in the country fell 3.3 percent year-on-year in November, following an 11.6 percent drop in October. The luxury property sector was also down three percent year-on-year in Beijing.

Also, after decades of steady growth, Australian property values have dropped this year. Meanwhile, property prices in Japan continue on a 20-year downward trend.

Source : PropertyGuru – 19 Dec 2011

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