2010-08-27 19:05

HONG KONG, Aug. 27 /PRNewswire-Asia/ -- The latest economic data from Korea suggests that growth in the economy has started to gain greater support from domestic demand. The initial data release showed that a strong investment overturn has helped to support growth of 1.5% in the second quarter. Indeed, RICS believe that the Korean central bank will continue to tighten interest rate policy by 25 basis points when it meets next month taking rates to 2.5%. However, ongoing rises in availability in the office sector continues to dampen rental expectations for offices. In the investment market, capital values rose for the second consecutive quarter in the office market, whilst rising for the first time in 2 years in the retail sector.

Australian commercial property rental recovery kept in check

Indeed, the results of the Q2 RICS Global Commercial Property Survey shows that surveyors in Australia are finding the pace of growth in the occupier market beginning to temper, as many indicators show increases in activity are subsiding. The all property net balance for occupier demand eased from +62 to +19, while enquiries broadly moved the same way; the net balance softened from +66 to +21.

Brazilian central bank to signal end of tightening cycle

RICS expects the BCB to increase the Selic rate by 25bp to 10.75% and announce the end of the current tightening cycle. Indeed, inflation, measured by the IPCA-15, has been falling (4.44% in August) and is now below the 4.5% target.

Swedish rates to rise, euro area rates on hold

The resource utilisation picture reflects the much stronger pace of economic growth that has taken place in Sweden relative to the Euro area; in two out of the last five quarters, the quarterly pace of expansion in Sweden was above 1%.

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SOURCE Royal Institution of Chartered Surveyors