(Financial World) report: 10 major international cities, housing prices have risen by more than 70% in the past 11 years
China News Service, Beijing, March 5 (Reporter Pang Wuji) The "Report on the Housing Price Index of 10 International Cities in the Fourth Quarter of 2020" released by the Yiju Real Estate Research Institute on the 5th shows that under the background of the global currency release, the fourth quarter of 2020 includes The housing price index of 10 major international cities including London, Tokyo, New York, Beijing, Shanghai and Seoul hit a new high.
The report pointed out that in the fourth quarter of 2020, the housing price index of 10 major international cities rose 1.5% from the previous quarter and 4.9% year-on-year. Compared with the trough after the subprime mortgage crisis nearly 11 years ago, it rose by 73.9% in the second quarter of 2009.
After the outbreak of the new crown epidemic in early 2020, the global economy has been severely impacted.
According to estimates by the International Monetary Fund, the global economy in 2020 will have the largest output contraction since the end of World War II.
However, the report pointed out that in 2020 the housing price index of the top 10 international cities continued to rise against the trend, and even accelerated in the second half of the year.
Shen Xin, a researcher at the E-House Real Estate Research Institute, analyzed that it was mainly due to the large-scale release of currencies in major countries around the world since the epidemic, and the flood of capital liquidity.
The report pointed out that in the fourth quarter of 2020, Los Angeles and New York saw the largest year-on-year increase in housing prices, 9.8% and 9.6% respectively.
The rise in housing prices in the two major cities in the United States was obviously mainly stimulated by low interest rates.
In March 2020, the Federal Reserve urgently cut interest rates to an ultra-low level of 0%-0.25% and announced the opening of unlimited QE.
Last year, U.S. mortgage interest rates fell to the lowest level in nearly 50 years. U.S. real estate sales were extremely hot, inventory in many regions across the United States fell sharply, and house prices rose sharply.
However, Shen Xin pointed out that with the strengthening of economic recovery expectations, the recent U.S. bond yields have risen sharply, and the historically low housing mortgage interest rates have also risen. It is expected that housing prices in New York and Los Angeles will shrink in the first quarter of this year.
In the fourth quarter of last year, housing prices in many cities were at historical highs or hit new highs.
For example, in the fourth quarter of last year, house prices in Singapore rose 2.1% from the previous quarter, the largest increase since the first quarter of 2018. The house price index surpassed the high point in 2013 and hit a new high since the 2008 financial crisis.
Housing prices in Seoul, South Korea hit a record high.
Although the South Korean government introduced a number of control policies last year, tightening loan restrictions on home buyers, and raising various real estate taxes, the policies did not meet the expected goals, and on the contrary pushed up housing prices.
In the third quarter of last year, London house prices continued their upward trend and hit a record high. In the fourth quarter, London house prices fell slightly, still a high level of consolidation. (Finish)