There may be no clearer example of this than the Brazilian residential property market.
And in June of 2006, interest rates at 5.25% triggered a collapse of the residential property market and brought about the Great Recession.
Chinese stocks will probably not be so fortunate, with markets in both Hong Kong and Shanghai set to finish the week lower amid fears that Beijing will implement further tightening measures to control prices in the residential property market.
Resistance from federal housing officials nearly scuttled the residential market for property assessed clean energy (PACE) financing, as cities and counties across the country shuttered programs.
FORBES: Bucking A Trend, California Residential Clean Energy PACE Program Thrives
"All the capital in London residential property has normally gone into the prime market, " Mr. Donnell said.
Among the numerous sectors of the market, only residential-property companies have lower valuations, reflecting the steep climb in mortgage rates in recent months and clear signs that housing sales have cooled.
As with the residential market, credit for buying commercial property has tightened.
The property market has seen an increase in residential prices of more than 32% since 2007 and luxury developments and conversions are in demand.
He maintained a negative investment rating on Singapore's developers and the residential property sector, citing a large supply of unsold apartments, rising vacancies in the rental market and the continued risk of more government intervention.
However, I am not convinced by his bearishness about residential property, and I think he is making a mistake by looking at China as one unified real estate market.
FORBES: Is Jim Chanos Right About A China Real Estate Bubble?
In light of this lackluster investment performance, and in the aftermath of the recent housing-market collapse, why is there such rapt attention to the revival of the homebuilding industry and residential property markets?
应用推荐