RICS Global RE Weekly: Chinese Property Market to Slow Further on Stimulus Withdrawal

HONG KONG, Sept. 10 /PRNewswire-Asia/ -- RICS expects price declines to gather pace in the coming months as the removal of monetary stimulus starts to filter through more fully into housing demand. The latest M2 money supply growth figures continue to point to property price falls accelerating over the coming months and additional tightening measures are unlikely to alter this trend. 

High inflation continues to be a concern for Indian economy

The Reserve Bank of India (RBI) meets on Thursday the 16^th, to set the repo rate (main monetary policy instrument). Despite recent signs of moderation, RICS believes that the current monetary tightening will continue in September in the face of sustained high inflation, with the RBI likely to hike the rate by 25bp.

UK commercial property prices set to fall modestly in second half of 2010

Tuesday the 14^th sees the release of the latest data on the UK commercial property market as the Investment Property Databank (IPD) announce their results for August. RICS expects that the data could bring news of a fall in UK commercial property values for the first time in over a year as reduced risk appetite for non-prime properties and worries over the strength of the economic recovery starts to encourage a gradual upward shift in yields in the coming months.

Euro area construction sector faces increased downside risks

Recent economic news flow has increased downside risks facing the construction sector as we move into the fourth quarter. Indeed, the latest EuroCOIN reading - which provides a real time estimate of euro area economic growth over the latest three months - fell to 0.37% in August, the weakest rate since October 2009.

Please download from the following for the complete report content: http://ricsasia.org/webpage.php?id=97

For further details of RICS, please visit our new website: www.ricsasia.org

Media enquiry, please contact:

Ms Belinda Chan / Ms Ava Lau
Tel:   +852-2372-0090
Fax:   +852-2372-0490
Email: belinda@creativegp.com / ava@creativegp.com