HONG KONG, Feb. 18, 2011 /PRNewswire-Asia/ -- The bullish performance of the economy as a whole is seemingly reflected in the property market. The recently released RICS Global Commercial Property Survey for Q4 2010 shows that the commercial real estate sector is continuing to perform strongly; sentiment from property professionals remains positive as the outlook for both rents and capital values sit near the top of RICS standings. Indeed, rental expectations for office and retail property returned a net balance result of +100, indicating that all respondents anticipate rents to increase over the coming three month period.
Cost of money set to edge upwards in the UK as mortgage finance remains tight
For much of the property sector, the prospect of earlier increases in the cost of money than previously seemed likely is undoubtedly a concern. But market linked borrowing rates, particularly for mortgages, have already begun to creep towards.
Inflation in danger of ruining of Brazil's party
The recently planned budget cuts of US$30 billion to rein in inflation have not convinced the markets, as inflation expectations have continued to rise for the 10th consecutive week to stand at 5.75%. Indeed, with inflation at a 6 year high (5.99% in January), there is a real danger of inflation expectations becoming unanchored.
Interest rates are a key risk for the French housing outlook
A key risk facing the house building sector is the future path of interest rates; the European Central Bank has turned increasingly hawkish in recent months on the back of above target inflation readings and is signaling it may soon begin to hike rates.
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