Public housing remains out of reach for many.
Barclays Research believes new private home sales volumes will come off 30% in 2013 on the recent government measures, and private home prices could fall 10-20% by 2015E, due to: 1) a mortgage rate hike coinciding with peak housing completions, resulting in higher vacancies and required rental yield expansion; and 2) a weak secondary market due to the seven prior rounds of tightening measures.
Their economist Joey Chew wrote on 12 Sep “Openness and household debt – the Achilles’ heel” that a acroeconomic shock could also trigger a market correction.
Here are 10 staggering facts to substantiate the forecast:
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