HONG KONG, Jan. 14, 2011 /PRNewswire-Asia/ -- Urban property price index has slowed over the last three months, but the annual growth in prices was still 7.7% in November. Interestingly, there has been speculation that the much touted property tax will be implemented from the end of the first quarter. No official details of the tax have been released from Beijing, but some sources report that the tax, to be trialled in Chongqing, will be roughly 1% and will only apply to high-end residential property.
Japanese economic recovery should feed through to real estate sector
The more lenient attitude from banks, coupled with the better tone to the economy, is likely to manifest itself in a pick-up in loan demand as 2011 wears on. The real estate sector should gradually derive some benefit from this accommodating approach which is also likely to be reflected in a slightly firmer trend in land prices.
Euro area construction output likely to be volatile in Q1 because of the snow
The Construction PMI headline reading fell from 53.8 to 36.0, while the building activity (over the last three months) net balance in the EC Construction Survey fell from -3 to -15. Given this situation, the construction output data at the euro area level is likely to be extremely volatile during Q1, showing a strong weather related rebound driven by Germany.
Brazil set to raise interest rates
The Central Bank of Brazil (BCB) meets for its first monetary policy meeting of 2011 on Wednesday, 19th. The meeting will likely see a resumption of monetary tightening that has been put on hold since August 2010 on the back of rising inflation (5.91%), which is well above the 4.5% target rate. Additionally, the BCB has increased its 2011 inflation forecast from 4.6% to 5%. Hence, the BCB will likely hike the SELIC rate by 50bp to 11.25% in the next meeting.
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