theSun Property January 2016

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ON FRIDAY JANUARY 15, 2016
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but these trends seem firmly in
place for this year.”
Zandi adds that market
conditions look good for those
aiming to sell their homes with the
low number of new and existing
homes in the market, not to
mention the higher prices.
Nevertheless, with the US
economy said to be on the road to
recovery, thus improving wage
growth, the market is reported as
getting healthier by the day.
Last year, the government
housing administration cut its fees
which helped first-time home
buyers. It is expected to do the
same again, as finances improve.
Big mortgage lenders are also said
to be working to loosen the high
credit plug.
However, with the increase of
those finding jobs and living on
their own, households that have
lost their homes in foreclosure,
and more and more empty-nesters
down-sizing or simplifying – all
these have been fuelling demand
resulting in a flourishing market
that has outstripped the supply. So
for renters, 2016 looks like it’s
going to be a tough year, especially
as vacancy units are at its low and
rents continue to rise. Moreover,
developers are said to be slow in
increasing the construction of
new single-family or
smaller houses.
GREAT BRITAIN
The expects
“choppy times ahead”
for the UK property
market. According to its
research, “the UK
property market will
have more on its plate
than just the perennial
issue of whether house
prices will rise or fall”.
It also reported that
throughout England and
Wales, stamp duty rates
will increase by April,
for anyone buying a
home that is not their
main residence. The
same will occur in
Scotland. “These are
expected to make it more
expensive for second-home buyers
and buy-to-let landlords, and deter
some potential buyers altogether,”
reported.
In all, the property market in
the UK is set to receive some
“jolts”. “An extraordinary about-
turn for landlords,” said property
commentator Henry Pryor as
Propertymarket
overview for 2016
>Global professionals’ viewon themarket in
some of the ‘power houses’ around theworld
PART1
WITH
real
estate
officially
recognised as an asset
class, it is no wonder
that property markets
around the world
have continued to
receive more interest
and attracted a global
following. In
Malaysia, there are
many with a watchful
eye on the property
market across all
corners of the world.
And why not?
Especially with the
steady returns it has
earned many that
have taken the
trouble to learn the
ins and outs of
property investment
along with the risks
involved.
As the world recently closed its
books on 2015 and opened a new
chapter for 2016, we check what
the authorities in global economy
and property have to say on the
property market industry in
various regions around the world.
LAND OF OPPORTUNITY
Moody’s chief economist Mark
Zandi sums up the US property
market for the new year. His
prediction – that homeowners,
landlords and taxpayers should
have a good year, apart from
renters. “Gauging trends in
housing is often an intrepid affair,
“rents are unlikely to rise to
compensate for the increase in
stamp duty, and capital values are
likely to fall – the government’s
intention.”
A leading commentator at
mortgage brokers John Charcol,
Ray Boulger, predicts some
turbulence in the earlier part of the
year. He reckons that there will be
a rush to purchase buy-to-let
properties before the higher stamp
duty rates are increased.
“Till then, I think we will see
some quite strong growth prices,
then I expect to see prices falling
for the next fewmonths as that
element of demand is taken out of
the market.”
Follow our column next week
and learn about the property
market in Australia and Southeast
Asia, followed byMalaysia.
The Economist house-price index
Q2 2006 =100
Singapore
UK
US
2006
200
175
150
125
100
75
50
2007
Q2 2006
Sources: OECD; ONS; Standard & Poor’s; Thomson Reuters; Urban Land Authority
Q3 2015
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