'Property market on steroids': Asia-Pacific's real estate boom sees buyers bidding up prices

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Analysts and real estate agents say competition among home buyers is heating up, causing property prices to shoot through the roof.

Housing prices have shot up across cities in Asia-Pacific this year, fueled by record low interest rates amid the pandemic.The current boom has been due to low interest rates, loose monetary policy and "uneven distribution of wealth" during the pandemic, says Regina Lim of JLL APAC.

Optimism has also gained steam as vaccination rates gain pace, and some countries move toward a post-Covid recovery. The overheating in property markets across some Asian cities has led to wide expectations that governments will intervene through housing curbs or other measures such as fiscal or monetary policy.– analysts attributed the move to rising home prices and increasing debt.Here are the cities with the highest year-on-year price increases as of end June, according to data from real estate consultancy Knight Frank.

Sean Coghlan, global director of capital markets research and strategy at JLL, said: "There are more prospective buyers than on-market opportunities, creating more intense bidding processes," Coghlan says, adding that has been seen in the residential and logistics property segments in the region in particular.

 

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Now see, steroids reduce inflammation. So if the market were on steroids it would deflate or remain static.

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