All across the world emerging market central banks periodically try to dampen surging house prices. But these actions only delay the inevitable and by eliminating boom-and-bust cycles actually pave the way to higher and not lower real estate prices.
Take Hong Kong. It has the most highly priced residential real estate in the world and yet home loan-to-value limits of 50 per cent have been in place many times over the past few decades. People still pay a fortune to live in a shoe box.
Why the UAE Central Bank’s credit squeeze will ultimately have the reverse of the intended effect on house prices « ArabianMoney
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