S&P Global Ratings has advised that real estate values in Asia Pacific have reach perilous levels, mainly in Shanghai, Sydney and in Hong Kong, stated by Bloomberg in their report.
“Asset prices, particularly property prices, these days are as elongated as they were before the Asian crisis,” stated Elena Okorochenko, the respected head for Asia-Pacific ratings throughout a conference held in Singapore on September 13 (Wednesday).
It is necessary to keep an eye and focus on this risk, Elena mentioned, given the higher prices as well as the household debt in the three previously mentioned markets.
As a matter of fact, the residential fees in the most and second most high-priced housing markets –Sydney and Hong Kong – correspondingly elevated by 21 percent then increased by 75 percent in the 12 months to the month of June.
Mr. Paul Chan, the former Financial Secretary, had previously warned the people to be careful and more vigilant when buying real estate in the city. Anyone wouldn’t want to regret in their decisions. This is essential for each individual to be cautious in their buying choices.
In the meantime, the National Bureau of Statistics of China exposed that home values in Shanghai increased by up to 33 percent in year 2016.