Asia set for drip-feed of property regulation
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Asia's property markets are set for a continuous drip feed of tighter regulations in coming months as authorities try to take the froth out of surging home prices without triggering a crash.
Last week Hong Kong announced its fifth set of measures this year as it struggles to curb speculation in its property markets. China, Singapore, Taiwan, Thailand and Malaysia have also unveiled more stringent regulations in recent months.
But Asian investors' appetite for property seems far from sated with prices continuing to climb. That will likely prompt governments to raise mortgage requirements again, increase land supply and - in the case of China - impose property taxes.
"My baseline scenario is we will need more measures - the current set worked but their impact is transitory," said Tim Condon, head of research at ING Financial Markets in Singapore.
Authorities' ability to curb speculation is hindered this time round by the abundant liquidity in the market and central banks' reluctance to raise interest rates too fast amid a patchy global economic recovery.
Many investors, particularly at the luxury end, are coming to the market flush with cash, meaning measures such as putting a cap on mortgages relative to the value of a property aren't as effective as usual.
