HONG KONG, Aug. 6 /PRNewswire-Asia/ -- Concerns have been mounting in recent months that a clampdown in lending activity specifically targeted at the property sector could lead to marked declines in property prices in the coming year.
Indeed, this week's news that the Chinese banking regulator has asked lending institutions to perform a stress test, (factoring in 60% peak to trough decline in prices compared to 30% previously) has only added to these worries in recent days. Results pending, the stress tests could however instil some confidence in the Chinese economy's ability to weather a period of asset price deflation. This seems almost inevitable in the coming quarter.
RICS expects next week’s data to confirm that measures to withdraw stimulus continue to slow activity.
New Zealand residential prices continue to slide
The PMI index for July is released on Thursday 12th and the June retail sales data is published by Statistics New Zealand on Data from Quotable Value New Zealand (QVNZ) has shown that house prices have continued to slide in recent months, with the fall in June being the third consecutive month on month decline. The Real Estate Institute of New Zealand (REINZ) house price index has shown a similar trend, with month on month falls in April and May, but a modest increase in the June index.
Retail sales in Brazil rebound while real estate sector continues to rise
Retail sales rebounded in May from April, up 1.4% but below analysts' expectations. There was a sharp increase from the 3.1% slump in April, and takes retail sales' year on year growth to 10.2%.
The latest RICS Global Commercial Property Survey for Q2 2010 showed occupier and investment demand for commercial real estate reaching a 3 year high. Stronger demand is pushing up rental and capital value expectations.
Canadian housing outlook slightly more subdued
Canadian Mortgage and Housing Corporation (CMHC) is forecasting that housing starts will total 182,000 by year end (a reduction of about 4% from current levels). This slightly more subdued outlook stems mainly from two factors. First, the Bank of Canada has just begun to tighten monetary policy and second, risks remain to the global economy, following the European sovereign debt crisis.
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