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- 9.1 per cent jump in home prices may trigger property reforms | South China Morning Post
China’s home prices rose the most in nearly three years in September, led by a surge in big cities, adding to the threat of a property bubble that is set to test government policymakers at a key economic reform meeting due next month.
The rises show that China’s four-year-long attempts to balance controlling property prices without stifling one of the bright spots of growth in a slowing economy have not succeeded. The focus now turns to whether the government will act at the ruling party’s plenum in November.
Property is still seen by many Chinese as the safest investment, meaning demand for housing is strong, while central government exhortations to local authorities to control prices have met with resistance because many local authorities rely on land sales to boost their coffers.
“Some targeted actions may be taken in the coming months…,” Harrison Hu, an economist at UBS, said in a research note.
Source … https://www.scmp.com/business/economy/article/1337182/91-cent-jump-home-prices-may-trigger-property-reforms
- Home Prices To Rise Despite Falling Sales And Higher Rates As Inventory Remains Tight – Forbes
… the reality remains one of limited inventory and lack of good land supply around major metropolitan areas. Monday’s report by the national Association of Realtors showed inventory stood at 5-months supply, or 2.2 million units, compared to the 5.5 to 6-months supply Barclays sees as the equilibrium point. Attractive land supply is difficult to come by, Barclays notes, particularly in up-scale markets like California, a trend that will be accelerated by homebuilders’ strategic move to deploy cash reserves toward property acquisitions.
Source … https://www.forbes.com/sites/afontevecchia/2013/10/21/housing-market-strong-despite-falling-sales-and-rising-rates-as-tight-inventories-support-prices/
- Australia’s house prices are running out of control | James Norman | Comment is free | theguardian.com
What we are now witnessing is a trend that is occurring in major cities globally including London, New York and Paris. Major, thriving cosmopolitan international cities like ours are becoming global capital reserve shelters. Such cities in relatively prosperous economies are in danger of becoming places where the world’s richest people can safely park their money and sit back to watch it grow at a staggering rate.
Clearly Melbourne needs higher density planning for environmental, public transport and infrastructure reasons. But these developments are not offering affordable housing or in any way contributing to building diverse communities. They are being sold as mostly one or two-bedroom “off-the-plan” investment properties for rich local and, increasingly, international investors.
Meanwhile, rather than providing affordable housing or support for those struggling in the top-heavy housing market, in Australia it is high income earners that are the overwhelming beneficiaries of government housing support.
Source … https://www.theguardian.com/commentisfree/2013/oct/22/australia-property-house-prices
- Not Bank of England’s role to regulate house prices – policymaker | Reuters
(Reuters) – The Bank of England should not try to regulate house prices, a BoE policymaker said on Monday, just hours after a property website reported that asking prices in London jumped 10 percent over the past month.
The BoE’s Financial Policy Committee (FPC) is tasked with spotting and pricking asset bubbles, and is already under pressure to rein in Britain’s housing market at a time when a new government mortgage guarantee scheme risks raising prices further.
Widespread aspirations to home ownership in Britain make property a major driver of the economy. But house price rises in London in particular, which attracts foreign property investors, have driven up rents and put home purchases out of the reach of many relatively well-paid workers.
However, the FPC said in September that there was no immediate danger of a national housing bubble, and it lacks a clear mandate to tackle localised house price rises that do not threaten national financial stability.
Source … https://uk.reuters.com/article/2013/10/21/uk-boe-taylor-housing-idUKBRE99K0CM20131021