Fitch Ratings on developments in the Asia-Pacific housing markets
- Housing market risks through the region are varied
- In Singapore, house prices are expected to rise; while in South Korea, Australia and New Zealand, property market conditions are likely to continue to soften.
- We do not foresee developments in housing markets in Australia and New Zealand to have a material impact on asset performance and therefore covered bond ratings in 2019, as both countries are supported by sustained economic growth, low and stable unemployment, significant population growth and low, albeit rising interest rates.
Also:
- do not expect any downgrades of sovereign ratings in the region
- However, the consequences of geopolitical risks on an international scale are hard to predict.
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For the wider economy one of the concerns about the downturn in house prices its the impact on confidence and spending. So far retail sales in Australia have held on. But its complicated! Only this week we saw a consumer confidence plunge (in the Westpac data).
