House price inflation dropped to a 14-quarter (42
Month) low of 3.6% in Q3 FY15 (2014 October to December) due to lower end-user
demand and rising inventory.
House price inflation dropped to a 14-quarter (42
Month) low of 3.6% in Q3 FY15 due to lower end-user demand & rising
inventory.
House price inflation, as measured by the annual
growth in the Residential Property Price Index (RPPI), peaked in the 3 months
to December 2013 and has been declining since then, Reserve Bank of India (RBI) data show.
Moreover, the annual growth in housing price
index & CPI-Housing Rent Index has been similar over the last 7 quarters (
21 Months).
Banks / housing finance companies (HFCs) have
become cautious in sanctioning housing loans as data show a decreasing trend in
median loan-to-value (LTV).
Meanwhile, as housing & gold prices tumbled,
growth in equity (share) prices picked up.
Src: FE Bureau, RBI,
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