HONG KONG, March 18, 2011 /PRNewswire-Asia/ -- The latest survey suggests that housing demand is trending downwards after it showed the number of new loans approved in January fell 4% from December (down from 12,879 to 12,351). The January number was 7% lower than a year ago, suggesting the rise in prices of residential property, coupled with HKMA macro-prudential measures, is now putting off some speculative investors.
Euro area mortgage lending likely to rise further, but risks are shifting to downside
Given sustained economic growth across the region and firming labour markets, RICS sees further upside potential in the reported annual growth rate of euro area mortgage lending through 2011.However, mortgage lending growth is unlikely to move into double digits and the risks to this forecast are shifting to the downside.
US house price falls leading to more foreclosures
The flow of distressed properties coming onto the market is continuing to put downward pressure on house prices, which in turn is putting more homeowners in negative equity, which is considered a necessary condition to default on their mortgage payments. This in turn, results in more foreclosed properties.
Commercial property remains well underpinned in Poland despite interest rate fears
Sentiment in the commercial property market remains generally positive for the time being benefiting from the favourable economic climate and relatively low interest rates. The most recent RICS survey suggests that expectations for both capital values and rents are positive and towards the upper end of the range of countries that RICS monitors.
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