Asian Real Estate Still Hurting

Nicholas Holt, Knight Frank

Nicholas Holt, Knight Frank

Prominent Asian cities are still seeing property prices decline. Will the threatened Brexit, coming U.S. Elections and the continued economic uncertainty depress the capital values even further?

Independent global property consultancy, Knight Frank has released the Global House Price Index for Q1 2016. The index monitors and compares the performance of mainstream residential markets in 55 countries across the world.

The index grew by 3.4 percent on average in the 12 months to March 2016, however the top performing countries including Turkey and Australia are now seeing their rate of annual price growth decrease.

Asian Hubs Sliding 

The global uncertainties are also influencing Asian markets as they too falter. Singapore, Hong Kong and Taiwan have all seen prices decline by between 3 percent and 6 percent in the year to March 2016, a combination of sluggish economic growth, regulatory measures and new supply are restraining price growth.

Chinese Market Polarised

«The slowdown in growth across many emerging Asian economies has weighed on residential property markets. Indonesia and Malaysia are feeling the impact of the wider macro-economic slowdown. India continues to suffer from pockets of oversupply and a gap in pricing expectations between developers and buyers,» said Nicholas Holt, Head of Research for Asia Pacific at Knight Frank.

«The Chinese market is still seeing polarised performance, where Tier-1 and large Tier-2 cities are seeing price growth; whilst smaller Tier-2 cities, Tier-3 and Tier-4 cities are struggling with high unsold inventory,» Holt added.

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