House prices are likely to rise only modestly across Asia-Pacific (APAC) in 2018, with regulatory tightening, rising interest rates and declining affordability acting as a drag in most markets, says Fitch Ratings in a new report.
The rating agency said that monetary tightening in the next few years – globally and within the region – will gradually bring to an end the ideal conditions that have supported housing markets over much of the last decade. However, tightening is unlikely to be enough to trigger a sharp correction during 2018. Moreover, stable economic performance and prudent underwriting standards are likely to help contain increases in arrears as mortgage rates rise.
