Can Asian hubs withstand the coming global property downturn?

Asia is not immune to the headwinds buffeting global property markets. But structural factors bode well for the key cities in the long run. PHOTO: AFP
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SINGAPORE - For home owners and investors alike, the burning question is whether property markets in Asia will succumb to current soaring borrowing costs.

Since the start of 2022, mortgage rates have doubled on average across major global cities. In the US, the 30-year fixed rate mortgage has exceeded 7 per cent, while in Britain – where variable rate loans dominate – the effective mortgage rate is now nearly 6 per cent, up from just over 2 per cent a year ago.

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