HONG KONG, March 11, 2011 /PRNewswire-Asia/ -- The Bank of Korea raised rates to 3% on Thursday 10th, after a brief pause in the policy tightening cycle in February. If interest rates are forced significantly higher by the persistence of inflation the risk is that the upturn in sentiment in the commercial property market could wane.
Higher Indian interest rates to hit residential trading volumes but not prices
Higher mortgage rates are beginning to have an impact on sentiment in the residential property market and this is likely to be reflected in lower trading volumes over the coming months. As yet, there is little evidence of developers lowering prices but with banks a little more cautious about lending to the sector.
European construction to stabilise during second half of the year
At the Euro area level, RICS expect construction output to stabilize during the second half of this year. This is broadly consistent with continued economic growth in the region and a steadier labour market.
US housebuilding to remain subdued through 2011
RICS continue to anticipate a fall of around 5% in prices during 2011, due mainly to the supply overhang in the housing market and the continued flow of foreclosed properties coming onto the market.
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