“Very significant” income growth will drive the first leg of a recovery in home prices in Singapore, where property ownership as a proportion of household assets is near a record low, BNP’s Asia-Pacific head of research for financial institutions and property Wee Liat Lee said in an interview while visiting the city-state. That will boost prices by 10 percent to 15 percent over the next 12 to 15 months, in turn luring foreign buyers, especially from China, Lee said.
Bulgaria Air starts operating 10 new regular passenger flights to some of the most attractive cities in Europe and…10 Views | the publication reaches you by | Bulgarian Business Club
Home values have dropped 12 percent from their 2013 peak, while Hong Kong prices reached record highs earlier this year.
“Hong Kong has been a crazy market, prices will never come down,” Lee said.
With China’s government stemming capital outflows, money has become stuck in Hong Kong, he said. “If you’re in a country where the physical amount of investable assets is really small, then the liquidity will squeeze the asset price very quickly.”
Still, Lee doesn’t see a property bubble developing in Hong Kong, where he is based. While prices are elevated and affordability has worsened, most payments are in cash, limiting the amount of debt propping up prices, he said. Price growth may also slow as the government takes steps to avert a bubble in the world’s most-expensive housing market.
The Bulgarian economy shrunk by 4.6 percent last year, and in 2021 the country expects a recovery and…15 Views | the publication reaches you by | Bulgarian Business Club
Do you have information you want to reach our readers?