According to Bloomberg, Indonesia’s most aggressive monetary tightening since 2005 is set to slow economic growth without denting soaring property demand in the world’s fourth-most populous nation.
A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 percent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 percent this year.
“Indonesia has a huge population, that’s a potential market for us,” said Setyo Maharso, chairman of the Indonesian real estate association, which predicts 2013 property sales will rise to 400,000 units from 260,000 last year. “For our buyers, as long as they have the ability to pay monthly installments, sales will keep increasing till the year end.”
With foreigners restricted from owning property in SoutheastAsia’s biggest economy, Indonesia is confronting a surge in local demand rather than the capital inflows that spurred record home prices in neighboring Singapore and Hong Kong. After the central bank imposed stricter loan-to-value ratios for mortgages, persistent price gains may prompt the government to raise some real-estate taxes, PT Bank Danamon Indonesia said.
“By giving a luxury tax, especially for high-end properties, it would help to curb home-price increases,” said Anton Gunawan, chief economist at Bank Danamon who was a candidate for the No. 2 job at the central bank this year. “Returns from property remain high as there’s an expectation that home prices are still rising.”
Posted by camelliacamellia on October 23, 2013
REITS in Hong Kong, Singapore Lose Their Allure
Hong Kong and Singapore have seen a spate of initial public offerings by trusts playing on investors’ desire for two elements in recent months: yield and hard assets.
But a recent selloff in real-estate investment trusts in both cities hints at the fading allure of dividend-paying stocks, as concerns that the U.S. Federal Reserve may soon scale back its stimulus moves have driven up Treasury yields and rattled investors around the world. The drop in REITs also comes as investors fear that property prices could decline in Hong Kong and Singapore.
Posted by admin on June 17, 2013
Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit could rock the country’s economy.
Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit — where each ringgit of growth nearly matches an extra ringgit of consumer debt — could rock the country’s economy, the Financial Times (FT) reported today.
The country’s household debt ratio is the highest in the region, the influential daily reported, citing Johanna Chua, an economist at Citigroup, who believed this makes the Southeast Asia’s third largest economy vulnerable, especially as lower-income households bear a greater share of the overall debt.
Posted by Innovator on May 24, 2013
Singapore’s economy took an unexpected turn higher in the first quarter of the year.
Martin Vaughan from WSJ: Singapore’s economy took an unexpected turn higher in the first quarter of the year as a rally in financial markets buoyed the city-state’s banking sector.
Gross domestic product expanded 1.8% in the first quarter on a seasonally adjusted, annualized basis, an improvement from preliminary data that had indicated a 1.4% decline, the government said Thursday. Officials said they expect growth to pick up modestly for the remainder of the year on stronger external demand, but kept their full-year growth forecast at 1.0%-3.0%.
Posted by Innovator on May 23, 2013
“What have you done to me lately?”
For banks around the world, the answer to that question seems to be the determining factor in whether banks are largely trusted. In countries whose financial systems did not blow up during the worldwide recession, trust has remained high. But in some European countries where the banks were generally viewed as having caused the crisis, trust plunged and has not recovered.
Online surveys of “informed publics” in 26 countries were conducted by people hired by Edelman, a public relations firm. Respondents were asked how much they trusted banks “to do the right thing,” on a scale of one – “do not trust them at all” – to nine – “trust them a great deal.” In the 2013 survey, conducted in October and November and released this week at the World Economic Forum in Davos, Switzerland, more than two-thirds of the respondents in seven areas – all but one of them in Asia – thought the banks were worthy of trust. They were Indonesia, India, Malaysia, China, Hong Kong, Singapore and Mexico.
At the other end of the spectrum, fewer than a third of the respondents in six countries – all in Europe – thought bankers could be trusted. They were Ireland, Spain, Germany, Britain, the Netherlands and Italy.
Posted by cbasdeo09 on January 28, 2013
Singapore’s financial district.
Singapore, Hong Kong and Japan are among the most competitive economies in Asia and the world, according to the latest rankings from the World Economic Forum.
Singapore scored second globally behind Switzerland, the same one-two order the small, banking-centric economies occupied in last year’s rankings. Hong Kong jumped two spots to nine. Japan, despite a moribund economy, remained the 10th-most competitive economy in the world by the group’s formulation.
The World Economic Forum’s global competitiveness ranking is the sort of thing presidents and prime ministers like to tout when they are on trade missions or selling government bonds to investors.
Competitiveness, as defined by the World Economic Forum, the group behind the famous confab of the rich and influential in Davos each year, is a measure that roughly translates into a country’s productivity, and thus its ability to generate prosperity.
Posted by byu2012 on September 5, 2012
Top UK traders and dealmakers bruised by intense banker bashing believe an Asian city will take over as the world’s dominant financial centre within 10 years, according to a survey.
They also relegated London to third place from second as their preferred location behind Singapore and New York, the poll by headhunters Astbury Marsden found.
Nearly two thirds of 450 British investment bankers surveyed said Hong Kong, Shanghai or Singapore would be the top global finance centre in 10 years.
One fifth felt London would be the world leader in 2022 and one sixth said New York would hold No.1 spot.
“A fast growing, low tax and bank friendly environment like Singapore stands as a perfect antidote to the comparatively high tax and anti-banker sentiment of London and New York,” said Mark Cameron, operations chief at Astbury Marsden.
The annual ‘Preferred Location Survey’ also found Singapore is the city where British bankers would most like to live, claiming 31 percent of the vote, up from 27 per cent last year.
Posted by byu2012 on August 28, 2012
MONTREAL – The latest survey of China’s purchasing managers, an early gauge of changing economic conditions, indicated a weakening of domestic demand, adding to concern of a slowdown throughout Asia, although data from South Korea and Singapore looks more positive.
The HSBC/Markit flash PMI, which comes out ahead of the government’s data. was reported at a lower than expected 48.1, the fifth consecutive month under the neutral 50 level, and down from 49.6 February.
Posted by stekunan on August 7, 2012