Ill winds for Phuket property? Watch China
PHUKET OPINION: Asian stocks were mixed yesterday due to investor concerns that Chinese moves to slow a soaring property market will undermine economic growth and recovery for the region, including Phuket.
On Monday, China increased the deposit reserve requirement ratio for most banks for the third time this year, the latest in a series of measures aimed at cooling the country’s skyrocketing property prices.
The Jakarta Post notes that the moves could help trigger a real estate price drop of more than 30 percent in the biggest cities in China and cut economic growth by a whopping 3 percentage points.
Given the ongoing ambivalence in the Phuket property market, any major economic missteps in China are sure to have have a significant and rapid damaging effect on real estate prices here.
