The real estate investor are stating that the Asian housing market is presently facing a bubble
Housing prices have risen dramatically throughout Asia-Pacific cities this year, propelled by historically low borrowing rates and the epidemic
Housing prices have risen dramatically throughout Asia-Pacific cities this year, propelled by historically low borrowing rates and the epidemic. Optimism has grown as vaccination rates have increased and several nations have begun to recover from the COVID-19 outbreak. Analysts believe that as firms migrate to a hybrid work paradigm, where employees work from home some of the time and in the office other times, demand for larger houses has increased. The overheating of property markets in certain Asian cities has sparked widespread speculation that governments would interfere with housing restrictions or other policies such as fiscal or monetary policy.
South Korea, for example, raised interest rates within the country for the first time in more than three years, citing rising housing prices and mounting debt as reasons. According to Victoria Garrett, head of residential Asia-Pacific at Knight Frank, yearly growth in Asia-Pacific was 6.4 percent year on year, the largest rise in four years. According to analysts and real estate brokers, there has been fierce rivalry among property purchasers, resulting in bidding wars and outrageous cash offers much over market value. Rising prices are being driven higher by more competition and huge pools of cash targeting real estate.
The Asian housing market, according to one property agent in Singapore, is "on steroids." “Some buyers don't even go inside the houses; they simply look at them from the exterior or watch the home tour videos,” said Kenneth Tan of PropertyLimBrothers, a real estate firm. He went on to say that out of every ten purchasers, three would skip the screening. According to Tan, bidding has been so frenetic that their listings have had cash bids worth up to USD 595,000 higher than the official price appraisal for homes worth more than USD 2.2 million.