Real Estate Deals Remain Elusive Worldwide
Real estate in Southeast Asia has shown signs of recovery ever since the financial crisis hit and despite the prevailing trend in the region, Deal Street Asia reported. However, it is still not very attractive for fundraisers; the activity has been dubbed as 'not very ideal.' Other investors are exploring other parts of Asia, ignoring the Southeastern region.
Across the world, however, the situation isn't any better. Bloomberg reported that the UK property market is showing no signs of getting better after all that has happened in their country. First and foremost is the "Brexit" scare; the market has yet to recover after investors were scared off by the repercussions of this exit.
It was the main reason being cited by most media outlets for the current woes the real estate market is suffering. The latest survey conducted by the Royal Institution of Chartered Surveyors reflected what the investors and home buyers were thinking. The picture was that of buyers too anxious to move and sellers too reluctant to jump on deals. There were also agents struggling to make negotiations work.
Simon Rubinsohn, the chief economist at RICS, said that "Brexit" remained the biggest concern on everyone's mind. Evidence pointed towards buyers being scared away by the added uncertainty hounding property transactions.
It remained to be seen whether things will be made better by deals and policy shifts, but the survey seems to show that the chances of things changing in the next months are slim to none.
In China, things aren't as bad, but analysts have been warning through analysis that its housing market mirrors that of the Japanese property "bubble" in the 1980s. SCMP reported that China's property bubble started to grow after loose policies were enacted after the 2008 financial crisis, and the US-China trade war couldn't have happened at the worst time.
It isn't final, however; that it happened in Japan is already a good thing for China. Analysts pointed out that China could use the Japanese incident as a model on how to navigate the housing market bubble. If land prices keep on rising, the population will inevitably start to shy away from the market. Only then will China experience something similar to the Japanese property crash.
Wang Yeqiang, a researcher at the Chinese Academy of Social Sciences, suggested that the government should take a close look at cities in danger of following the Japanese policies. The government has already been seen doing that, initiating crackdowns on risky lending practices and debt.