Property speculators now target the APAC region

Property speculators now target the APAC region
Jan 4, 2010 - PropertyGuru.com.sg

The meltdown of US property prices did not affect the enthusiasm of many home buyers in other countries, especially in Asia.

Home prices in most parts of Asia-Pacific continue to surge. But solid demand for apartments, houses and villas, coupled with a stimulus package and low interest rates, fuelled the major price increase in late 2008 and early 2009.

Singapore home prices soared 15.75 percent in Q3 2008, prompting the government to denounce property speculation and warn about a market bubble forming.

In Australia, home prices have solidified and started to rise again, despite being described by others as “unaffordable prices”. On the other side of the country, home buyers in Perth are also facing price increases as the state and city enjoys a buoyant economy due to a resources boom happening in the northwest of the state.

In China, particularly in Shanghai and Beijing, increasing demand pushed the prices to a high level, with many people now calling the property boom a "bubble". The Chinese government already implemented measures to limit price increases and is considering further measures.

Chinese Premier Wen Jiabao last week told Xinhua news agency, “property prices have risen too quickly,” and pledged to control any speculations.