Property Slowdown Beckons as Next Risk for Emerging Markets - Bloomberg:
As growth worries and trade war jitters threaten to spoil any rebound for emerging markets in 2019, property markets are shaping up as a critical element to monitor for further signs of gloom.
Some developing economies from Thailand to Dubai and Brazil are facing double-digit real estate sales declines on the back of weakening domestic growth. Developed countries already have shown some of the pain -- including Australia, the U.K., Switzerland and Singapore -- and made all the more worrisome as borrowing costs remain relatively low.
“There are different factors driving the various markets; real estate tends to be to a large extent a localized market,” said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. “However, the one over-riding theme is decelerating economic growth momentum, which is continuing to be a headwind for all markets and preventing a recovery in markets, such as Dubai, which have faced multi-year downturns.”
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