We are moving into the reporting season for the 3rd quarter and I must say that if markets were rising in the middle of the year, they are absolutely flying now. Property counters across the board have risen and it remains to be seen how long this will continue.
Personally, I am quite conflicted on the overall outlook for the property sector. For developers, the en-blocs will probably make them money, as they are most likely to intensify the use of the plots. However, I don’t know how the individual homeowner would stand to benefit from this? I think overall prices psf might not rise as optimistically as people think.
Overall, I think it remains to be seen if the property sector is likely to soak up a lot of the liquidity left over from the recession in the last few years.