Slowdown of us stimulus to impact asian markets

Photo: Stefano Mara

The tapering of economic stimulus in America is predicted to impact to Asian markets in the coming months.

The reduction of bond buying in the US is likely to affect residential property markets that previously benefited from cheap credit in recent years, according to Knight Frank’s Asia-Pacific Residential Review.

“Singapore and Hong Kong are likely to see sales volumes further compromised as new purchasers see mortgage rates rise, and the attraction of property recedes slightly,” predicts the report.

Several Asia-Pacific markets have already been subject to cooling measures designed to avoid a potential housing bubble. In China, “Five New Measures” were implemented recently, but despite their effect on some cities, prices have continued to climb across “most regions,” reports Knight Frank.

Market sentiment continued to weaken in Hong Kong, though, as the numerous rounds of cooling measures and the first hand sales ordinance, effective from the 29th April, saw price growth suppressed.