Asian real estate markets seem on the surface, the recovery of the Asian crisis and again on their feet. In fact, everyone has experienced a housing boom in the last ten years – Europe, USA, Australia and New Zealand have seen the rise of commodity prices.
But in Asia, the reality is quite different. Residential markets in Asia are poor, according to a report by the Global Property Guide. Once the figures rising prices are adjusted for inflation, Asian record seems bad.
LIVING property markets like Asia have done since the peak (adjusted for inflation):
Hong Kong: still 61% below the peak
Indonesia: still 50% below the peak
Malaysia still 10% below the peak
Philippines: still 55% below the peak
Paris: still 37% below peak
South Korea also 38% below the peak
Thailand is still 10% below the peak in 1992
“There are few plants that are less profitable than their Asian residential property over the past ten years,” says Matthew Montagu-Pollock, publisher of Global Property Guide.
“And if the construction boom underway in Asia, plan the next ten years to have fun not for real estate investors themselves.”
rental yields are relatively high in Indonesia, Thailand and the Philippines, while Asian countries to benefit from strong economies. But growing their real estate markets has been limited mainly by the Government of MIS-steps.
“Asian real estate markets have been more had not been made for the failure of government,” said Prince Cruz, chief economist of Global Property Guide. “If it is not defeated a coup, a protest or March, inflation dips, while the government interfering in the housing market, which killed the performance. “survey Cruz victims of government subsidies and intervention, while the housing of the Philippines , Indonesia and Thailand have suffered from political instability in the housing market in Singapore, Hong Kong and South Korea.
Asian prices are still well below the peak
Despite reports on the glossy cover prices of goods from Asia are still below their levels before the Asian crisis. In a report proposing the Global Property Guide, the combination of inflation, widespread subsidies for housing, construction and political problems, the results are made quite differently from other booming markets of Asia. Asia shows the housing boom, there is a construction boom – not a feature tree, “he warns investors against the seductive siren song of the following real estate professionals.
Adjusted for inflation, the situation changes significantly with pleasure the good news of higher prices for goods.
Indonesia, for example, is a difficult moment, wrestling against inflation. Adjusted for inflation, Indonesia, house prices actually fell by 8.4% in 2005 and the year of 7% per year during the second Qu 2006th
In nominal terms this year, a slight decline in prices in Hong Kong (3.7%) is exacerbated by inflation. Hong Kong property prices actually declined in real terms by 6%.
The results (modest) price increases in South Korea, Singapore and the Philippines actually become price declines, or at least significantly reduced inflation taken into account if.