INTERNATIONAL LESSONS FOR THE PROPERTY PRICE BOOM IN SOUTH AFRICA

South Africa appears to share some of the characteristics (property price boom, easing of monetary policy, strong domestic demand growth) of asset price booms in industrial countries that were followed by a period of weak growth. The international experience suggests that a number of practical obstacles need to be overcome before a more proactive role for monetary policy is warranted. However, a larger variety of available mortgage contracts, including longer‐term fixed‐rate contracts, should allow for a more efficient allocation of interest rate risks. Also, a more systematic nationwide collection of property price data, including data on commercial property price developments, would provide a more representative basis for analysis.     

Am Puls des deutschen Wohnimmobilienmarktes

In its recent history, Germany has faced many serious economic crises. Remarkably, these crises all had a completely different impact on local housing markets. Some crises occurred at the national level, while others only took place at the regional level. Interestingly some crises were seemingly unnoticed by the German housing market. Hence, the question arises why the German housing market reacted differently to these crises and to what extent economic policy decisions were involved.