Real Estate Outlook In May 2022

Los Angeles, California. Our economy is losing momentum. It is expected that this year’s economic growth will slow down from nearly 3% in 2018 to 2~2.5%. The factors driving this growth are the disappearance of financial support, the impact of monetary policy tightening, and the impact of trade with China, which may lead to a decline in the value of real estate.

Affected by the closure at the beginning of the year, the economic growth in the first quarter will be particularly sluggish. In the case of tight labor market and partial tax rebates, personal consumption will still be the growth engine of real estate investment in the next few months.

although the labor market is relatively tight, the inflationary pressure is expected to be restrained. At present, the utilization rate of production capacity has reached 78%, which is about 4 percentage points lower than the long-term average level The fund interest rate of is maintained at the current level, which is expected to stabilize the relatively high barrier of the real estate investment market.

We do not expect a serious recession or even a recession, so we have maintained the middle path for real estate investment. But we still prefer more active policies, because we cannot exclude further political and economic setbacks. Maintain “; according to our publication,”; market cycle “;

However, for which type of real estate has the greatest investment potential, we continue to hold a small amount of subsidies for medium-sized apartment investment. According to the cyclically adjusted expected capitalization rate, they at least consider that the expected income increases by about 7%, which seems not expensive.

On the other hand, we cannot rule out the possibility of further slowdown of economic expansion. Due to various concerns and uncertainties, we remind real estate investors to pay close attention to all real estate markets.

According to PwC Real Estate 2020:; “Building the future”; looking forward to 2020 and beyond, the real estate investment industry finds itself in the center of rapid economic and social change, which is changing the building environment. Although most of these trends have been obvious. People will naturally underestimate the impact in the next six years and beyond. By 2020, real estate managers will have broader opportunities, greater risks and new value drivers. Real estate is a long industry that takes several years from planning to construction. Now is the time to plan for these changes.

Finally, more importantly, it is believed that the real estate in the diversified investment areas will provide the best buffer to cope with the difficult road ahead.