Asia-Pacific Property Markets Suffer from Global Slump Fever
While Asia appeared to have previously been untouched by the global property slump, it appeared that the slowdown has finally reached the markets of Australia, Hong Kong, and Singapore. S&P Global Ratings' report, as stated by Bloomberg, showed what appeared to have been effects of a 'macroeconomic instability' slowly affecting these markets.
To be frank, these cities are as different from each other as China is from the US. However, the reason they are being affected simultaneously is that of similarity in problems. The markets in these cities suffer from hikes in borrowing costs, the volatility of stock markets, and government policies becoming increasingly restrictive. China's encouragement of local spending is also a huge force affecting the Asian property market.
Hong Kong's housing values have fallen by about 27 percent last year, still better compared to 70 percent in 2017 as Chinese developers have cut back from successful bids. Singapore, meanwhile, suffers from measures to cooldown already-expensive home prices. Sydney, meanwhile, is cautiously watching what could be the after-effect of an 11.1 percent decline in home values.
So how serious are these declines going to be? Hard to tell, but its effects on the economy might be serious, after all. Financial Post reported that the lowered prices and higher mortgage, which are aftereffects of the sliding markets, might be enough to lower confidence of the consumer in these markets.
Even Beijing isn't safe from the global slowdown, but it's been in decline because of the government trying to control spiraling prices for the people. Multiple home purchases are not suggested-at least, while the situation is where it's at. Real estate agents have done all they can to try and spur buying, even giving away 'freebies' such as a BMW Series 3/X1. However, buyers have been largely reluctant to buy homes, even with lowered prices.
The trend suggests that what had started in the second half of 2018 will continue onward to 2019, until such time that the market normalizes-that is, prices start to stop sliding, and buyers start to return. Until then, however, market players and agents have to adjust to scenes like this-where real property developers are building properties without buyers, and agents resort to all kinds of gimmicks just to be able to turn a profit, even with lowered Asian property prices.