HONG KONG, Jan. 21, 2011 /PRNewswire-Asia/ -- The Hong Kong Monetary Authority (HKMA) is likely to have been concerned with the November results and will be eager to see some slowing in the number of applications and approvals, as both remain near all time highs (since April 2004). The recently released house price index from Centadata shows that prices grew 2% in the month to January 9th, and are now above pre-crises levels. The HKMA maintain that speculative buying is a concern and will almost certainly have to act again if the residential market shows no signs of cooling.
Indian property market to feel further effects from interest rate hikes in 2011
There are already some signs that previous interest rate hikes seen in 2010 are starting to cool some sectors of the economy. The latest PMI business surveys of both the manufacturing and service sector for December showed a slowdown in activity with industrial output also growing at its slowest pace in 18 months in November.
US house prices likely to decline by 5% in 2011
October's CaseShiller Index slipped 1% on the month, but more significantly it recorded a negative annual growth rate for the first time in 2010 (-0.8%). With a vacancy rate of 2.5%, RICS calculates there to be around 580,000 excess units in the housing market, which will need to be absorbed into the market for house prices to stabilize. This helps to explain why the RICS expects a fall of 5% in the CaseShiller 20 city house price index during 2011.
2011 likely to be a year of two halves for Cypriot property market
During H1, the labour market will probably continue to deteriorate given still depressed levels of sentiment; as a result, property values are unlikely to find much support. However, the economy returned to growth at the beginning of last year and, given the usual time lags, this should eventually feed through to the labour market and stabilise property values towards the latter part of the year.
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