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- Only higher rates will ease property prices | South China Morning Post
I know there is talk in Hong Kong too of a slowdown in the property market. A good number of people are now singing the government line that punitive stamp duties have restrained prices.
I am not so sure, and neither is the data. Certainly the government’s own official residential property price index indicates no sign of correction, as the chart shows. The latest data only goes up to August but the stamp duties should have bitten into prices long before then.
Further analysis suggests that the focal point of the property market has moved from Hong Kong Island to the New Territories and from larger flats to smaller ones. The talk of weakening prices may therefore reflect only the personal circumstances of prominent talkers who live in big Hong Kong Island flats.
Source … https://www.scmp.com/business/article/1338249/only-higher-rates-will-ease-property-prices
- As income stagnates, housing becoming unaffordable – CBS News
For homes to become more affordable, people’s income would have to grow faster than inflation. But with the economy, hiring and wage growth remaining sluggish, that is unlikely.
Even renting is expensive when so many can’t buy. They all crowd into apartments and other rentals, driving up rates.
So, the economy needs more and better-paying jobs so, depending upon their personal desires and needed flexibility, workers can afford to rent or buy.
Source … https://www.cbsnews.com/8301-505145_162-57608801/as-income-stagnates-housing-becoming-unaffordable/
- Norway Leaves Key Rate Unchanged as Housing Market Deflates – Bloomberg
Norway, like Switzerland, has struggled to keep its economy balanced as unprecedented monetary easing across the globe distorts asset prices in some of the world’s richest nations.
Norges Bank is trying to balance policy to avoid fueling currency gains without overheating an economy buoyed by a booming petroleum industry and house prices that have doubled since 2002. Private debt has surged to 200 percent of disposable income, according to the central bank.
Source … https://www.bloomberg.com/news/2013-10-24/norges-bank-leaves-rates-unchanged-as-housing-market-deflates.html