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Impact of low interest rates on Asia-Pacific commercial property prices likely to be limited, says UBS

The pause in US Federal Reserve interest rate increases is unlikely to boost commercial property prices in Asia-Pacific, according to a new report from UBS.Citing historically low rental yields, driven in part by high pricing, the report noted that in Asia-Pacific cities outside Australia, the “marginal benefit from an extended period of low interest rates is very limited”.“Yields across most APAC markets are at their lowest in the last 10 years. Obviously, that does not mean prime yields… Source link

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Property 

Hong Kong’s home buyers return in droves as banks kept mortgage rates unchanged amid a dovish monetary policy

Hong Kong’s property buyers are back in droves, as commercial banks kept the city’s mortgage rates unchanged amid a dovish policy stance by the local monetary authority.Across the city, four property projects with 891 flats in total were offered for sale in Lohas Park, To Kwa Wan, Yau Tong and West Kowloon in the biggest weekend launch in a year. As of 4:30pm, 447 of the total offering, or just over 50 per cent, had been sold, according to sales agents.“The purchasing power accumulated from… Source link

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Australia’s record high housing prices were driven by low interest rates, central bank study shows

The boom in Australian home prices and building over the past decade or so was primarily driven by lower real interest rates, while strong migration tended to lift rents, according to a study paper from the country’s central bank.The research model from Reserve Bank of Australia (RBA) economists Trent Saunders and Peter Tulip also suggested that a further reduction in real rates could revive home prices after recent weakness.At their peak, prices in Sydney more than doubled between 2008 and… Source link

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China 

Shenzhen banks become first in China’s megacities to ease mortgage rates – others may follow suit, say analysts

Mortgage rates in Shenzhen have begun to creep down, in a sign that the strict property controls holding house prices in check in mainland China’s biggest cities may be starting to loosen.Some of the southern city’s banks have tentatively lowered their borrowing costs for homeowners in the last few days, making Shenzhen the first of China’s so-called tier-1 cities to bring down the prohibitively expensive rates.Analysts said lenders in other megacities may follow suit.The average mortgage rate… Source link

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So, are US interest rates going up or down? All we know is that the Fed doesn’t really know

It was 90 years ago that American soda company Coca-Cola came up with the iconic slogan, “The pause that refreshes”, which became a mainstay of posters beyond the 1920s. Coca-Cola advertising seems to have a knack for being in tune with the mood of the public, and Federal Reserve chair Jerome Powell has apparently taken that slogan to heart, announcing a sharp swing in attitude and signalling a pause in the interest-rake-hiking cycle. That pause has certainly refreshed markets after a less than jolly December. Globally, equity markets rebounded strongly…

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Vietnam 

Central bank to ease lending rates – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

The State Bank of Vietnam (SBV) buying net US$4 billion in January may be the way to lower Vietnamese đồng lending rates.— Photo cafef.vn HÀ NỘI — The State Bank of Vietnam (SBV) buying net US$4 billion in January may be the way to lower Vietnamese đồng lending rates. The data was announced at the Government’s monthly meeting on Thursday. To achieve such a result, the central bank in late November 2018 sold greenback futures that…

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China, Hong Kong stocks get boost after mainland PMI tops estimates, Fed pauses on rates, trade talks get under way

Hong Kong and mainland Chinese stocks opened higher on Thursday, after an official gauge of China’s manufacturing activity came in better than expected, although it still indicated a continued contraction in the sector. The Hang Seng Index opened higher and rose further in early trading, last up 1 per cent at 27,908.38. The Hang Seng China Enterprises Index, known as the H-shares index, gained 1.1 per cent at 11,015.36. Tencent pulled higher, up 1.9 per cent at HK$350.60. Sunny Optical Technology, a smartphone component supplier of Huawei, advanced 2.5 per…

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Fed leaves rates unchanged, will be ‘patient’ on future hikes

The Federal Reserve held interest rates steady on Wednesday but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the US economic outlook. While the Fed said continued US economic and job growth were still “the most likely outcomes”, it removed language from its December policy statement that risks to the outlook were “roughly balanced” and struck language that projected “some further” rate hikes would be appropriate in 2019. In a separate release from its policy statement, the US central…

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China and Hong Kong stocks swing on outlook for trade talks, rates and earnings

Chinese and Hong Kong stocks swung between gains and losses Wednesday as traders sorted through a platter of rapidly approaching market-moving news: the US-China trade talks, a decision on the key US interest rate, and corporate earnings at home. The Shanghai Composite Index added 0.1 per cent to 2,595.99 in morning trading after falling as much as 0.6 per cent. The Hang Seng Index also gained 0.1 per cent to 27,546.77. Trading on the mainland’s exchanges was light as the markets will be shut all of next week for the…

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Vietnam 

Moody’s rates Nam Á Bank for first time, stable outlook – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Customers conduct transactions at a branch of Nam Á Bank. The bank was given a B2 stable outlook rating by Moody’s. – Photo ndh.vn Viet Nam News HÀ NỘI — Credit ratings agency Moody’s Investors Service has assigned its first ratings and assessment for Việt Nam’s Nam Á Commercial Joint Stock Bank, giving it a B2 stable outlook. According to Moody’s, the ratings assigned to Nam Á Bank were based on the progress the bank had made on recovering problem assets, and an improvement in profitability. At the…

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