HONG KONG, April 1, 2011 /PRNewswire-Asia/ -- Japan's Cabinet Office estimates the total damage from the earthquake to be in the region of Yen 16 to 25tn; the first projection assumes the devastation to the area affected by the tsunami to be twice the level of the Hanshin Earthquake (which took place in 1995). The rebuilding process is likely to take place, roughly speaking, over a three-year period. At least some Yen 7tn will be required from the government's pursue to put the badly damaged public infrastructure back in place.
Canadian home building likely to decline in the coming months
Canadian housing starts rebounded by rising 7% in January from December. Yet they still remain 10% below year ago levels and RICS does not expect this strength in housing starts to continue in the coming months due to falling annual growth rate of new house prices, new tougher mortgage rules and the anticipated interest rate hike.
Higher cost of mortgage finance in Europe will hit some markets more than others
The cost of fixed rate mortgages in Europe has already begun to rise as bond markets respond to the prospect of a tightening in monetary policy. Yet the higher cost of mortgage finance is not at this stage encouraging RICS to change its expectations for house prices in the euro area. France is likely to prove one of the buoyant markets but it is not the same case for Spain and Portugal.
Australian housing market still feeling effects of flooding
The Australian Bureau of Statistics (ABS) will release mortgage approvals data for February on Wednesday 6th. RICS expects the February number to ease further as a result of the extensive flooding in Queensland.
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