Logo of Phnom Penh Post newspaper Phnom Penh Post - S&P: Regional residential activity slows

S&P: Regional residential activity slows

Content image - Phnom Penh Post
A view of the Sathorn commercial district in Bangkok, Thailand.​ SUPPLIED/THE NATION

S&P: Regional residential activity slows

Activity has slowed in residential property within the Asia-Pacific region as policy tightening has rippled through some markets, with buyers and sellers waiting for conditions to stabilise, said S&P Global Ratings in a report published last week.

According to the report, Asia-Pacific 360 Macro-Housing Report: Activity Slower In Residential Markets, sentiment in the residential market has weakened as prices across much of the region were either flat or have declined gradually over the past six months.

The region retains binding macroprudential regulations, such as loan to value ratios. Price-cooling measures also remain tight, including stamp duties. Weaker sentiment and the tight regulatory environment have deterred market participants, the report found.

‘Oz real consumption growth slowed’

Australia’s housing slowdown is continuing. Auction clearance rates have recently improved, but it is too early to signal an imminent turn in the market. The property cycle will have some impact on broader economic growth, and S&P Global Ratings estimates that a 10 per cent decrease in the value of household residential assets would lead to a near one per cent fall in consumption.

“We estimate that Australia’s current housing slowdown is dragging down real consumption growth by a little under one percentage point annually,” said Vishrut Rana, Asia-Pacific economist at S&P Global Ratings. “The property cycle will also influence other parts of the economy, including construction and residential investment.”

China is a notable exception. Policy easing, including some slight relaxation of home purchase restrictions, has led to a modest recovery of the residential markets in China, reversing last year’s deterioration.

Regulators have eased price-cooling measures in lower-tier cities and mortgage rates have edged lower. Further policy easing is unlikely, however, as policymakers remain wary of overheating markets. This will likely restrain further price and activity increases, said the report.

In Hong Kong, residential prices have been rising again since February after falling for just seven months. Housing remains severely unaffordable despite the nine per cent drop in the price index from its highest level last year. Mortgage credit conditions have eased recently as markets expect more dovish monetary policy in the US.

“The economic environment in Hong Kong is challenging this year but that isn’t stopping residential prices from rising,” said Rana. “There is significant latent demand in the market amid supply constraints, and mortgage credit conditions are also easing.” THE NATION (THAILAND)/ASIA NEWS NETWORK

MOST VIEWED

  • Investors’ $14.4M projects approved

    New investments from local and foreign sources continue to pour into Cambodia despite the Covid-19 pandemic remaining a lingering threat to regional and global economies. This comes as the Kingdom’s gross domestic product (GDP) is expected to contract between one and 2.9 per cent this

  • NagaWorld casinos set to reopen, schools to follow

    NAGACORP Ltd has requested that it be allowed to reopen its NagaWorld integrated resorts in Phnom Penh after the government recently approved casinos to operate again, provided they follow Covid-19 prevention measures set by the Ministry of Health. Mey Vann, the director-general of the Ministry

  • Rubber exports stretch 17%

    Cambodia exported 97,175 tonnes of natural rubber in the first five months of this year, surging 17 per cent compared to the same period last year as the Covid-19 pandemic stretches on, Ministry of Agriculture, Forestry and Fisheries official Khuong Phalla told The Post on Thursday. Phalla,

  • ASEM supports Kingdom’s proposal to postpone meeting amid Covid

    The 13th Asia-Europe Meeting (ASEM13) scheduled to be held in Cambodia in November has been postponed until mid-2021 due to the Covid-19 pandemic, a Ministry of Foreign Affairs and International Cooperation press statement released on Saturday said. The decision was made during a two-day meeting

  • Coffee maker roasted for producing fake product

    The Ministry of Interior’s Counter Counterfeit Committee will send a suspect to court on Monday after she allegedly roasted coffee mixed with soybeans and other ingredients, creating a product which could pose a high risk to consumers’ health. On the afternoon of July 2, the

  • Cash handout programme 80% complete

    Minister of Social Affairs, Veterans and Youth Rehabilitation Vong Soth confirmed on Thursday that the implementation of the Cash Transfer Programme For Poor and Vulnerable Households During Covid-19 had been implemented for more than 80% of the over 560,000 families. The programme was introduced one week ago.

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Where is Cambodia’s exit strategy that can save the economy?

    With the prospect of being slammed by a double whammy, the government is working on an economic recovery plan to deliver it from Covid-19 and the EU’s partial withdrawal of the Everything But Arms scheme in the next two to three years Cambodia is

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Kingdom, UN discuss rights

    A year after Cambodia received 198 recommendations from UN member countries, the UN Office of the High Commissioner for Human Rights (OHCHR-Cambodia) met with the Cambodia Human Rights Committee (CHRC) to discuss following-up on the Kingdom’s third cycle of the Universal Periodic Review (UPR) and